UPDATE 1-Brazil grows robustly, inflation in check-Mantega

* Economy to grow 6-6.5 pct for rest of 2010-Mantega

* Inflation rate will fall within govt target by year-end

(Updates with more comments and context)

BRASILIA, June 17 (BestGrowthStock) – Brazil’s economy will grow
solidly in 2010, but a slowdown from the first quarter will
allow the government to bring inflation back to target by
year-end, Finance Minister Guido Mantega said on Thursday.

Latin America’s largest economy grew a massive 9 percent
year on year in the first quarter of 2010 and will grow between
6 and 6.5 percent on average for the rest of this year, Mantega
said during a presentation in Brasilia.

That will make it possible for the annual IPCA consumer
price index to fall back to within the government’s target
range for 2010 from 5.22 percent in its last reading in May.
The government aims to keep inflation at 4.5 percent plus or
minus 2 percentage points this year.

“In the first quarter, we are growing at a rate very close
to China’s… this shows that the Brazilian economy is dynamic
and has the capacity for stronger growth,” Mantega said.

He said there were already signs that the economy was
slowing somewhat.

“Now we are heading towards growth levels that are more
balanced and sustainable until the end of the year.”

The comments come the same day Brazil’s central bank struck
a hawkish tone in minutes from the latest monetary policy
meeting, warning that a narrowing output gap and a new
expansion cycle could stoke inflation. See [ID:nN17266223].

Stock Market

(Reporting by Isabel Versiani; Writing by Ana Nicolaci da
Costa; Editing by Chizu Nomiyama)

UPDATE 1-Brazil grows robustly, inflation in check-Mantega