UPDATE 3-Brazil raises interest rate again to salvage credibility
(Adds analyst comments and context)
By Alonso Soto
BRASILIA, April 29 (Reuters) - Brazil again steeply raised interest rates on Wednesday to convince investors that the government is serious about reining in runaway prices, despite fears that aggressive tightening will make an expected recession worse.
In a unanimous vote, the central bank's nine-member monetary policy committee raised the Selic rate by 50 basis points for a fourth straight time to 13.25 percent, the highest level since December 2008.
An overwhelming majority of traders and analysts expected the 50-basis-point hike.
Brazil's benchmark interest rate now stands well above those of other major emerging market countries such as India and Turkey, both with rates at 7.5 percent.
While most major economies have cut rates to shore up growth, Brazil has raised borrowing costs by 225 basis points in the past six months.
The Brazilian central bank gave no clear indication it is ready to stop the rate-hiking cycle just yet.
The bank repeated the same laconic message in its post decision communique, leaving analysts guessing. Continuación...