RIO DE JANEIRO, July 23 (Xinhua) -- Brazil's Central Bank announced Wednesday it has decided to raise the country's annual interest rate from 12.25 percent to 13 percent.
The central bank had increased the annual interest rate by 0.5 percent in both April and June, and the higher-than-expected rise of 0.75 percent this time surprised many.
The bank's monetary policy committee, known as COPOM, said the interest rate rise, as the third one this year, aims to rein in the bulging inflation in the country.
Brazil's accumulated inflation has reached 3.64 percent, and experts estimate it will exceed 6.5 percent by the end of the year.
COPOM will hold another three meetings this year, in September, October and December to discuss a further rise of the interest rate, which is expected to reach 14.5 percent by the end of the year.
