[Asia Economy Reporter Kwon Jae-hee] The Central Bank of Brazil raised its benchmark interest rate by 1.00 percentage point from 4.25% to 5.25% on the 4th (local time).
This marks the fourth consecutive increase following the rate hike from 2.00% to 2.75% in March.
The reason behind Brazil's recent rate hike is the mounting inflationary pressure since last year.
The authorities set this year's inflation target at 3.75%, with an allowable range of ±1.5 percentage points.
However, the inflation rate over the past 12 months through June was 8.35%.
According to the Central Bank's economic outlook report, the inflation rate is expected to be in the 7% range by the end of this year.
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