Brazil's central bank hikes interest rates to 12.75%

  • 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”.



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