Brazil Central Bank Raises Rate to 9%

Brazil has raised its benchmark interest rate to 9% from 8.5% in a further attempt to rein in inflation.

The central bank’s monetary policy committee, the Copom, voted unanimously for a third straight half percentage point rate rise.

The Copom left the door open for more hikes by reiterating that the latest rise is part of an ongoing rate-adjustment process.

A fall in the value of Brazilian real has stoked inflation, currently 6.15%.

The currency’s fall has been blamed on an outflow of capital triggered by expectation that the US Fed will end its stimulus policy, leading to a stronger dollar.

The real has lost 20% of its value against the dollar since the start of the year.

Other emerging nations, including in southeast Asia, have suffered similar currency problems.

via BBC

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