(MENAFN) Brazil's central bank has hiked its key interest rate by 0.5 percent to 12.25 percent as Latin America's largest economy fights to keep a lid on inflation and boost low growth, AFP reported.
In December 2014, the bank also raised the rate to 11.75 percent, following a one quarter point increase in late October and surprising many analysts who had expected a rise of just a quarter percent.
While the bank focuses on rising pricing and low growth, forecast to come in at barely zero for the year just ended and set to be equally stable this year, as industry wants lower rates to start a recovery.
"Taking into account the macroeconomic situation and inflation perspectives, COPOM (the bank's monetary committee) unanimously decided to raise the Selic rate," the bank said in a statement.
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