Brazil shocks markets with rate spike

The Central Bank of Brazil on Wednesday confounded analysts' expectations, opting to increase its benchmark Selic rate by 75, not 50, basis points.

Copom, the central bank's rate-setting board, has backed a half-point hike on the last three occasions. The majority of analysts predicted a rise by the same margin again, but the committee opted to tighten to 13% in order to move "inflation toward the [4.5%] target in a more timely manner."

The Selic rate last rose by such a margin since February

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