BRASILIA, July 29 (Reuters) - Brazil’s central bank raised interest rates to 14.25 percent from 13.75 percent as expected on Wednesday, delivering another hefty increase to stifle inflationary risks from a sharp depreciation of the local currency.
In a unanimous vote, the bank’s monetary policy committee, known as Copom, decided to hike the benchmark Selic rate by 50 basis points for the sixth straight time. The move was expected by a majority of economists and traders.
In the decision statement, the bank said keeping rates at that level for a sufficiently long period of time was needed for inflation to converge to the target in late 2016.
In an unusual move, international affairs director Tony Volpon abstained from voting. (Reporting by Alonso Soto; Editing by Lisa Shumaker)