Brazil's central bank hikes interest rates to 12.75%
March 6 , 2015
The central bank of Brazil has raised interest rates by 0.5 percentage points to 12.75%, a six-year high, in an attempt to tackle inflation.
Last month, inflation in South America’s largest economy was 7.4%, the highest in 12 years. The government wants to bring it down to 6.5%.
The Brazilian economy is expected to contract by over 0.5% in 2015.
The central bank said the decision to lift the interest rates was taken after assessing the “macroeconomic scenario and the outlook for inflation”.