![Brazil hikes key interest rate to double digits](https://www.portugalcolonial.pt/media/shared/articles/3e/88/b8/Brazil-hikes-key-interest-rate-to-d-786644.jpg)
-
Multiple people shot along highway in US state of Kentucky
-
In Papua New Guinea, Pope holds mass 'at the edge of the world'
-
Hewett stays positive for wheelchair tennis despite agonising defeat
-
Three things on US Open champion Aryna Sabalenka
-
Sabalenka downs Pegula to win US Open thriller
-
USA slump to first home defeat against Canada in 67 years
-
Argentina hand Australia record 67-27 loss in Rugby Championship
-
England impress on Carsley bow, Germany, Dutch hit five
-
AFP photographer wins top prize for Gaza coverage
-
No Love for Packers for three weeks after ligament sprain: reports
-
Pedro Almodovar: chronicler of modern Spain crowned in Venice
-
Trump sounds dark tone at rally, Harris 'ready' for debate
-
Wirtz and Musiala dazzle to kick-start new Germany era
-
Chinese teenager takes 7th gold of Paris Paralympics
-
England interim boss Carsley 'respects' divided opinions over anthem
-
Neuville moves to the front in the Acropolis Rally
-
Garfield, Pugh charm Toronto in new romance 'We Live in Time'
-
21 boys confirmed dead in Kenya school inferno
-
Over 100,000 protest in France against new prime minister
-
Golden 30 minutes takes China to swimming Paralympics swimming domination
-
Green leads Australia to T20 series sweep of Scotland
-
Nigeria, Cameroon win afer chaotic AFCON build-ups
-
Nicole Kidman: A-lister, cinematic chameleon, wins in Venice
-
'I had to prove myself', says Kolisi after win against All Blacks
-
Almodovar wins top prize at Venice film festival
-
Grealish savours England redemption after 'worst summer'
-
Carsley makes flying start as England interim boss in win over Ireland
-
Springboks close on Rugby Championship with storming win over All Blacks
-
Sri Lanka's De Silva and Kamindu Mendis defy England in third Test
-
Farrell's Racing lose on opening day of Top 14
-
Dunbar takes second Vuelta stage as Roglic closes in on victory
-
Fritz eyes US Open glory to end 21 years of American hurt
-
Thousands protest in France against new prime minister
-
Trump to hold rally in swing state, Harris preps for debate
-
Stone at the double as Sri Lanka collapse against England in third Test
-
French tennis player takes legal action over online abuse
-
Italy backs Kyiv's 'legitimate defence' as Zelensky presses allies
-
The Body Shop rescued from administration after deal
-
Smoke and screams: The horror of Kenya's school dorm inferno
-
MotoGP leader Martin roars to victory in San Marino sprint
-
Ireland and UK to 'reset' relations as Starmer begins Dublin visit
-
Ma Lin turns brutal encounter with bear into glorious Paralympic career
-
Flintoff appointed England Lions head coach
-
Sri Lanka hit back as Pope falls during England collapse in second Test
-
Kyiv hits Russian ammo depot as Moscow advances in east
-
Italy PM states 'determined' support as Zelensky presses allies
-
Bagnaia claims pole for San Marino MotoGP with lap record
-
Meet the Woodhalls: Track and field couple light up Paralympics and Olympics
-
Gaza war in its 12th month with truce hopes slim
-
Boeing's beleaguered Starliner returns home without astronauts
![Brazil hikes key interest rate to double digits](https://www.portugalcolonial.pt/media/shared/articles/3e/88/b8/Brazil-hikes-key-interest-rate-to-d-786644.jpg)
Brazil hikes key interest rate to double digits
Brazil's central bank hiked its benchmark interest rate by 1.5 points Wednesday to 10.75 percent, bringing it into double digits for the first time in nearly five years to fight rampant inflation.
The eighth straight increase to the Selic rate, which was in line with forecasts, comes as Latin America's biggest economy struggles through a recession and stubbornly high inflation that the bank's monetary policy committee said "continued to be a negative surprise."
The nine-member committee, which made the decision unanimously, hinted it would soon slow the tightening cycle, saying it "currently foresees a slowdown in the pace (of rate cuts) as the most adequate policy."
Brazil has responded to pandemic-driven inflation with one of the most aggressive tightening cycles in the world, rapidly raising the key interest rate from an all-time low of two percent in March 2021.
The last time the Selic rate was in the double digits was in May 2017.
Brazil's inflation rate came in at 10.06 percent for 2021, crashing through policymakers' target range -- currently 3.5 percent, plus or minus 1.5 percentage points.
But the hawkish monetary policy is putting the brakes on economic growth.
The economy fell into recession last year, contracting 0.4 percent in the second quarter and 0.1 percent in the third.
Analysts polled by the central bank are currently forecasting economic growth of a lackluster 0.3 percent for this year.
- Election year -
The weak economy has emerged as a major headache for far-right President Jair Bolsonaro, who is up for reelection in October and badly trails his nemesis, leftist ex-president Luiz Inacio Lula da Silva, in the polls.
Election-year and pandemic-related uncertainties loom large for Brazil's economy, but there are tentative signs of improvement.
The monthly inflation rate slowed at the end of the year, from 0.95 percent in November to 0.73 percent in December.
And industrial production came in at a stronger-than-expected 3.9 percent growth for 2021, according to figures released Wednesday -- though it remains 0.9 percent below its pre-pandemic level.
Central bank chief Roberto Campos Neto recently said he expected the rate-tightening cycle was "reaching its end."
The bank's next meeting is set for mid-March. Many analysts forecast the last rate hike will come in May, bringing the Selic to around 12 percent.
G.Machado--PC