Brazil's central bank says a slower global economic recovery and hikes in its key interest rate have lowered the risk of excessive inflation.The bank on Thursday released the minutes of last week's monetary policy meeting, during which it increased the benchmark Selic interest rate by 0.5 percentage points to 10.75 percent.
That was a smaller hike than many analysts expected, coming just a few weeks after the government announced record 9 percent growth in the first quarter.
The central bank also says the economy is showing signs of slowing, which should ease inflationary pressures.
The government's forecast is for 4.5 percent inflation this year. But a central bank survey of 100 economists sees 2010 inflation at 5.3 percent.
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