The monetary policy committee of the Brazilian central bank has said the recovery in the Brazilian economy has gained momentum and that it will pick up speed in the coming months, Xinhua reports.

The Chinese government-run news agency quotes the committee as saying so in announcing that it had cut the main interest rate by 0.5 percentage point to 4.5 percent.

The report says the Brazilian National Confederation of Industry forecasts that Brazilian gross domestic product will grow by 2.5 percent next year, propelled by annual growth in manufacturing of 2.8 percent due to investment increasing by 6.5 percent.

The lowering of interest rates is among the policy measures that are helping the economy recover, Xinhua quotes the head of the confederation, Robson Andrade, as saying.