The Brazilian central bank raised the benchmark interest rate to 13.75%

Xinhua News Agency, Sao Paulo, August 3 (Reporter Luo Jingjing) The Brazilian Central Bank announced on the 3rd that the benchmark interest rate raised 50 basis points to 13.75%.This is the 12th consecutive time since March 2021, the Brazilian central bank has raised interest rates.

In the interest rate hike statement, the Brazilian Central Bank Monetary Policy Committee said that in order to avoid long -term inflation risk, it is reasonable to "continue to tighten the monetary policy to a more restricted section."

According to data from the Brazilian Geographical Bureau of Geographical Statistics, in the 12 months of June this year, Brazil ’s broad consumer price index rose 11.89%.

Since the Federal Reserve Commission has opened the interest rate hike cycle in March this year, in order to prevent capital outflows from devaluation and inflation pressure, the Brazilian Central Bank has raised interest rates 4 consecutive times, and has raised the benchmark interest rate of 300 basis points.

However, the market is generally expected that this will be the last interest rate hike this year.The latest "Focus Survey" of the Brazilian Central Bank predicts that Brazil's benchmark interest rate in 2022 was 13.75%, which was the same as last week.

[Editor in charge: Jiao Peng]

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