Brazil's July activity falls more than expected ahead of rate decision
EWZ•Agriculture was the main drag in July
The central bank's IBC-Br index, seen as a proxy for gross domestic product, showed that the agricultural sector was the main drag in July, posting a 1.2% decline.
Industry fell 0.4%, while services - the backbone of Brazil's economy - were flat.
On a year-on-year basis, the IBC-Br index was up 1.1% in July.
July activity contracts more than expected
Economic activity in Brazil fell by a seasonally adjusted 0.2% in July from the previous month, a central bank index showed on Wednesday, compared with expectations for a 0.1% contraction in a Reuters poll of economists.
Latin America's largest economy has been cooling as elevated borrowing costs weigh on activity. July marked the second consecutive month of contraction following a revised 0.9% drop in June.
Central bank rate decision due later on Wednesday
Brazil's central bank has lowered its benchmark interest rate by 25 basis points at each of its last four meetings, bringing it to 14%, but the country's real rates remain among the highest in the world.
Policymakers at the bank will announce their next rate decision later on Wednesday, with economists in a Reuters poll forecasting another cut to .
