29 Aug 2013

Brazil raises interest rate

12:46 pm on 29 August 2013

The Central Bank of Brazil has raised its interest rate to 9% from 8.5% in an attempt to rein in inflation.

The BBC reports the vote by the bank's monetary policy committee was unanimous and left the door open for more rises.

A fall in the value of Brazilian real has stoked inflation, which is currently 6.15%.

The currency's fall has been blamed on an outflow of capital. The real has lost 20% of its value against the US dollar since the start of the year.