On September 4, the Central Bank released its quarterly Inflation Report. The expected growth rate for 2014 was revised lower, roughly by the amount markets expected. The forecast for 2015 was also in line with expectations. Inflation rates for both December 2014 and 2015 were revised higher and are now closer to market expectations.
The slowdown in growth was broad-based. The report emphasized the deceleration of non-durables consumption, and of investment in construction and public works, because of their more persistent character. This was the main factor behind the correction down in the GDP forecast. In the view of the Central Bank, the deceleration is not only deeper, but is also more persistent than previously expected.
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