LOS ANGELES (MarketWatch) - Brazil's central bank late Wednesday raised the country's benchmark interest rate to 8.5% from 8%, marking the third consecutive rate increase of a half-percentage point each. The bank's unanimous decision met widely held expectations that the key rate, known as the Selic, would be raised in an effort to clamp down on rising inflation that has hurt economic growth. The IPCA consumer-price index on a 12-month basis through June rose to 6.7%, surpassing the upper limit of the bank's inflation target of 6.5%. After the decision, the U.S. dollar USDBRL, +0.3419% bought 2.2627 Brazilian reals, less than 2.2783 reals late Wednesday.
Brazil hikes key rate to 8.5%, as expected
More News from MarketWatch