Brazil Raises Rates

Brazil has raised interest rates once again in a bid to tackle stubbornly high inflation.

The central bank’s monetary policy committee, Copom, raised Brazil’s benchmark Selic rate by 50 basis points to 9 per cent late on Wednesday.

Let's keep an eye on the real as well as coffee and sugar and see how they play out.

More from the FT:

Although price pressures eased last month after local governments were forced to revoke public transport fare increases, twelve-month inflation still came in at 6.27 per cent – just below the central bank’s 6.5 per cent maximum tolerance level.

Inflation has not ended the year on or below the central bank’s target of 4.5 per cent since 2009.

Financial Times