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Brazil kicks off interest rate hikes more aggressively than expected
Brazil’s central bank delivered its first interest rate hike in nearly six years on Wednesday, a larger-than-expected 75 basis point increase to 2.75%, and flagged a similar move in May to fight inflation despite rising economic uncertainty. The decision to raise borrowing costs comes at a fragile moment, as a raging second wave of the COVID-19 pandemic is sweeping Latin America’s largest economy. Brazil’s death toll and case count trails only the United States, and its economy is on course to contract in the first quarter. Still, the bank’s rate-setting committee, known as Copom, said its decision to raise ... (full story)