The central bank’s monetary policy-making committee decided on Thursday to raise the benchmark interest rate to 13.75 percent, the highest level since January 2017, in line with expectations of 23 of 29 economists polled by Reuters.
The inflation rate, in the largest country in South America by area, rose by 11.73 percent on an annual basis in the month of May.
The inflation rate in Brazil has remained above the 10 percent level since last September, due to the rise in food and energy prices, and the inflation rate is expected to remain high in the coming months, according to a Bloomberg report.
Brazil expected earlier that the inflation rate would reach 3.5 percent for the current year, and about 3.25 percent for the year 2023, which is much lower than the current inflation rates.
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