Brazil economy grows 9.35 pct in May -central bank

* May year-on-year growth rapid but pace eases from April

* Data comes on back of tentative signs of cooling

BRASILIA, July 14 (BestGrowthStock) – Brazil’s economy expanded
9.35 percent in May compared to a year earlier, according to a
central bank indicator on Wednesday, showing the bank may still
have to tighten monetary policy to head off inflation.

The bank’s Brazilian Economic Activity Index for May was
relatively steady from April but the pace had eased from
April’s 10.9 percent year-on-year growth
.

This was the month the central bank began on its latest
round of monetary tightening.

Brazil’s economy, the largest in Latin America, has been
among the fastest growing in the world this year, expanding 9
percent year-on-year in the first quarter.

The rapid growth has fueled fears of overheating but these
have dissipated somewhat on tentative signs of cooling.

Retail sales in May came in below expectations and
inflation halted in June. For more see [ID:nN13238253] and
[ID:nN0798129].

Even so, analysts in a weekly central bank survey expect
the monetary policy committee to raise interest rates by
another 175 basis points this year from 10.25 percent
currently. The central bank has already lifted borrowing costs
by 150 basis points since April.
(Reporting by Ana Nicolaci da Costa; Editing by James
Dalgleish)

Brazil economy grows 9.35 pct in May -central bank