Brazil Unexpectedly Lifts Rate on Rousseff Vow to Tame CPI
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Brazil unexpectedly raised its key rate for the first time since April, after President Dilma Rousseff said she would vigorously fight inflation in her second term.
Policy makers, led by central bank President Alexandre Tombini, voted 5-to-3 to raise the benchmark Selic by a quarter-point to 11.25 percent, saying the move would reduce the cost of ensuring a better inflation outlook in 2015 and 2016. One of 54 economists surveyed by Bloomberg correctly forecast the increase while the remaining expected the rate to be left unchanged for the fourth straight meeting.