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Brazil's Cielo cuts expense, investment guidance as inflation slows

SAO PAULO, Aug 1 (Reuters) - Cielo SA, Brazil's largest payment processor, on Tuesday cut targets for expense and capital spending growth this year, citing slowing inflation and declining client rentals of point-of-sale card machines amid a harsh recession.

In a securities filing, Cielo said cost and expense growth at the Cielo Brasil and Cateno subsidiaries was slashed to between zero and 2 percent from a 4 percent-to-6 percent goal released earlier in the year.

Guidance for capital spending, or money earmarked to buy payment processing equipment, was cut to a range between 150 million reais and 200 million reais ($48 million and $64 million), from 400 million reais previously.

($1 = 3.1256 reais) (Reporting by Guillermo Parra-Bernal; Editing by Sandra Maler)