Brazil raises policy rate by 100 basis points

The monetary policy board of the Central Bank of Brazil, known as Copom, unanimously increased the benchmark interest rate to 6.25%, in line with the general expectations of economists.

With 12-month inflation approaching double-digit figures, Brazil increased its historically low benchmark interest rate by 2 percent at the beginning of the year to combat consumer price increases.

1 POINT INCREASE IS EXPECTED NEXT MONTH

Copom announced that it will raise another rate of 1 percentage point next month to continue tightening its monetary policy.