Brazil raises interest rate to 7.5%

In an anticipated decision, Brazil's central bank raised the benchmark Selic interest rate for the first time since July 2011, in a move intended to curb inflation fears, currently running at 6.59%, above the ceiling of the country's 2.5%-to-6.5% inflation targeting range, help restore bank margins and boost investor confidence. The central bank's monetary policy committee voted to raise the base interest rate a quarter of a percentage point to 7.5% from 7.25%, lower than analyts had predicted. Nevertheless many expect the Selic rate to continue to raise as much as 8.5% by the end of the year.