BRASILIA (Reuters) -Brazil’s economic activity declined more than expected in July, marking a third consecutive monthly decline, a central bank index showed on Monday, highlighting a slowdown in Latin America’s largest economy as borrowing costs remain high.

The IBC-Br index, a proxy for gross domestic product, fell 0.5% in July from the previous month on a seasonally adjusted basis, compared with the 0.2% drop expected in a Reuters poll.

The index incorporates central bank estimates for farming, industry and services, along with production-related taxes, all of which posted negative readings in the month.

The index rose 3.5% in the 12 months through July, according to non-seasonally adjusted data.

Brazil’s benchmark Selic rate stands at 15%, near a two-decade high, as policymakers try

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