Brazil raises interest rates for fourth consecutive month

For the fourth consecutive month, the Brazilian Central Bank has decided to raise interest rates in the country. The news means that interest rates in the Latin American country now stand at 12.2 per cent, in order to combat the fact that inflation has rose to 6.55 per cent, Citywire.co.uk reports. High interest rates are likely to be welcomed by those looking to buy property in Brazil, with many developed countries still only offering base rates of under one per cent. David Rees, emerging markets economist at Capital Economics, told the news provider that high interest rates are the cause of rapid capital inflows – from foreign investors – and upward pressure on the exchange rate, creating an unbalanced economy. “But on the other hand, under pressure from the market, the BCB’s new governor, Alexander Tombini, is keen to assure investors that the bank has not gone soft on inflation,” he added.

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