The Central Bank of Brazil lowered the country's GDP growth forecast for 2018 from 2.6% to 1.6% against the backdrop of a worsening economic situation in the second quarter of this year. The Central Bank also raised the inflation forecast for this year from 3.8% to 4.2%. Nevertheless, the forecasted inflation still remained below the target of the Brazilian regulator in 4.5%. Earlier, the Brazilian Central Bank reported that inflation in the country was moving towards the target, and kept the key interest rate at 6.5%. At the same time, the Central Bank noted that the economic growth in the country remained weak.