Brazil to ‘Prolong’ Lending Rate Increases to Tame Inflation

Brazil’s central bank said it will raise interest rates at a slower pace for a longer period than initially planned as the country’s inflation outlook worsens, according to the minutes of its April 19-20 meeting.

Policy makers raised the benchmark Selic rate by 25 basis points, to 12 percent, on April 20 after 50 basis-point increases at each of their two previous meetings this year. They said today that a “substantial” part of their anti-inflationary effort has already been implemented given the recent rate increases and measures to curb credit.