Brazil makes largest rate hike in decades on fiscal concerns

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The Central Bank of Brazil implemented its largest rate hike since 2002 on October 27, in a fresh bid to tame rising inflation and respond to concerns on fiscal sustainability.

The monetary policy committee unanimously voted to increase the key Selic rate by 150 basis points to 7.75%. So far this year, the central bank has increased rates by 575 basis points. Nonetheless, with inflation running high, real rates remain negative.

The mid-month inflation reading published earlier this week stood

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