The Central Bank of Brazil announced on the 7th that it will raise the benchmark interest rate by 50 basis points to 14.75%, the highest level since August 2006. This is the sixth time since September last year that the Bank of Brazil has raised interest rates in a row. The central bank of Brazil said in a communiqué that the main reason for the rate hike was the continued rise in food and energy prices. At the same time, the US economic situation and policy uncertainty have intensified. Furthermore, high fiscal spending has also boosted the risk of inflation. The bank expects Brazil's inflation rate to be 4.8% in 2025, which is higher than the target range set by the bank of 3% median and fluctuating 1.5 percentage points up and down. The Bank of Brazil stressed that monetary policy needs to be prudent and flexible, and the bank will decide on the next policy based on the inflation situation at the June meeting.

The Central Bank of Brazil announced on the 7th that it will raise the benchmark interest rate by 50 basis points to 14.75%, the highest level since August 2006. This is the sixth time since September last year that the Bank of Brazil has raised interest rates in a row. The central bank of Brazil said in a communiqué that the main reason for the rate hike was the continued rise in food and energy prices. At the same time, the US economic situation and policy uncertainty have intensified. Furthermore, high fiscal spending has also boosted the risk of inflation. The bank expects Brazil's inflation rate to be 4.8% in 2025, which is higher than the target range set by the bank of 3% median and fluctuating 1.5 percentage points up and down. The Bank of Brazil stressed that monetary policy needs to be prudent and flexible, and the bank will decide on the next policy based on the inflation situation at the June meeting.