Brazil Raises Rate to 8.5% as Inflation Undermines Growth

Brazil’s central bank raised borrowing costs by half a percentage point for a second straight meeting, as the fastest inflation in 20 months undermines economic growth and fuels social unrest.

The bank’s board, led by President Alexandre Tombini, today voted unanimously to raise the benchmark Selic rate by 50 basis points to 8.50 percent, as forecast by all 51 economists surveyed by Bloomberg.