The Central Bank of Brazil yesterday raised its main interest rate by half a percentage point in an attempt to rein in inflation and prop up a currency that has been assailed by volatile global financial markets over the past few weeks.
The move, which was widely expected by observers, sets the bank's benchmark Selic rate at 9% – 1.75 percentage points higher than in April, when the rate was at a record low. The bank has since raised rates four consecutive times.
A note from Société Générale say
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