Brazilian central bank chief Ilan Goldfajn has predicted that the country’s economy will recover gradually in the months to come as interest rates keep falling, Reuters reports.

The news agency quotes Mr Goldfajn as saying political uncertainty in Brazil is doing only limited harm to the economy.

The report says cuts in the benchmark interest rate since October have helped the economy recover from its deepest recession for decades.

Annual gross domestic product shrank by more than 3 percent in each of the last two calendar years but economists polled by the central bank now forecast, on average, that GDP will grow by 0.3 percent this year.