Brazil’s central bank raised borrowing costs to the highest level in almost six years on price pressure from a weakening currency and kept its options open on the size of the next increase.
The board, led by President Alexandre Tombini, voted unanimously Wednesday to maintain the pace of tightening with a half-point increase to 12.75 percent, as expected by 59 of 63 economists surveyed by Bloomberg. Four analysts forecast a rate of 12.50 percent. Policymakers took into consideration “the macroeconomic scenario and the inflation outlook,” according to their statement, which was virtually unchanged from the prior meeting.
