The Central Bank of Brazil has decided to raise the policy rate by 1.5% to 7.75%, saying that prices are rising faster than expected.
This is the sixth consecutive meeting of rate hikes, raising caution against accelerating inflation.
The Central Bank of Brazil held a monetary policy meeting in the capital Brasilia on the 27th and decided to raise the policy interest rate by 1.5% to 7.75%.
The policy interest rate hike has been the largest for six consecutive meetings since March, and the rate hike has been the largest since December 2002.
Prices in Brazil have continued to rise due to rising global energy prices and record droughts, with prices rising more than 10% in September compared to the same period last year. ..
Inflation is also due to growing concerns that President Jair Bolsonaro will lose his fiscal discipline as he has announced a policy to significantly increase cash benefits to the poor as an urgent support measure following the spread of the new coronavirus. Is seen as a factor in.
The Central Bank of Brazil expects a similar rate hike at its next December meeting, increasing caution against accelerating inflation.