Brazil Central Bank Raises Rates to 12.75%

Brazil’s central bank has lifted interest rates to a six-year high of 12.75% to restrain inflation.
Inflation in Brazil, Latin America’s largest economy, was at a 12-year high in February of 7.4%. The government’s target is 6.5%.

Brazil’s economy had been one of the world’s fastest growing, but looks to have stalled in 2014.
Economists are now predicting that the economy will contract by more than 0.5% this year.

In a statement, Brazil’s central bank said: “In assessing the macroeconomic scenario and the outlook for inflation, the Copom [the bank’s monetary policy committee] decided unanimously to raise the rate by 0.5 percentage points, to 12.75%.”

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza