Brazil Central Bank Raises Selic Rate 50bps to 11.75%

The Banco Central do Brasil raised the Selic interest rate by 50 basis points to 11.75% from 11.25% previously. The Bank's policy committee said in its statement : "Following the process of adjustment of monetary conditions, the monetary policy committee decided, unanimously, to raise the rate to 11.75 percent a year, without a bias,". The move is intended to head off overheating as the Brazilian economy surges along with rising commodity prices. Brazil saw inflation of 5.99% in January, up from 5.91% in December.

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