Brazil economic activity up 0.3% in August, matching forecasts

BRASILIA, Oct 16 (Reuters) - ‌Economic ​activity ​in Brazil rose by a seasonally adjusted 0.3% in August from ‌the previous month, a central bank index ⁠showed on Friday, matching the median forecast ‌in a Reuters poll ‌of economists.

• The IBC-Br index, a proxy for gross domestic product, is compiled ​using the bank's estimates for agriculture, industry and services, as well as ⁠taxes linked to production

• August's gain was driven by ​industry, which expanded 0.9% from July

• On an unadjusted basis, the index ​was up 1.2% from ‌a year earlier and rose 1.6% on a rolling 12-month basis ⁠through August

• Brazil's central bank has argued that slower economic activity is needed for ⁠inflation to converge to its 3% target

• The ​bank forecasts gross domestic product growth of 1.8% this year, slowing to 1.4% in 2027

• Policymakers ‌are due to meet in early November for their next monetary ‌policy decision after delivering five straight ⁠25-basis-point interest rate ‌cuts, bringing the ​benchmark Selic rate to 13.75%

(Reporting by Marcela Ayres; Editing by Isabel ‌Teles)

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