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[BUSINESS] · Brazil · 25 sources

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Brazil economic activity indicator IBC-Br falls 0.6% in June

The Central Bank of Brazil reported that the IBC-Br economic activity indicator fell 0.6% in June compared to May 2026 on a seasonally adjusted basis. This decline, which exceeded market expectations, was driven by a 1.4% contraction in industrial activity and a 0.5% drop in the services sector, partially offset by a 1% growth in agriculture.

Despite the monthly dip, the IBC-Br expanded by 0.2% during the second quarter of 2026. Market projections from the Focus Bulletin remain stable for several key indicators: the 2026 IPCA inflation is expected at 5.02%, the 2026 GDP growth at 1.98%, and the Selic interest rate at 13.75% by the end of the year.

Central Bank President Gabriel Galípolo noted that monetary policy is currently in a restrictive stance to balance supply and demand. Meanwhile, the Ibovespa index has faced volatility due to domestic uncertainties regarding fiscal adjustments and election outcomes, alongside significant capital outflows by foreign investors from the B3 exchange.

Entities

B3 · Banco Central do Brasil · Brazil · Central Bank of Brazil · Darío Durigan · FGV · Federal Reserve · Focus report · Gabriel Galípolo · IBGE · Ibovespa · Itau

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