Alonso Soto – Reuters, 10/29/2014
Brazil’s central bank raised interest rates on Wednesday, surprising investors with a bold move that signals President Dilma Rousseff could make more market-friendly policy changes after her narrow re-election victory on Sunday.
In a divided vote, the central bank’s board decided to raise its benchmark Selic rate by 25 basis points to 11.25 percent. All 43 economists surveyed in a Reuters poll this week expected the bank to keep the Selic at 11 percent.
With the hotly contested presidential race over, the central bank moved swiftly to anchor inflation expectations at a time when markets are wondering if Rousseff is willing to overhaul her policies to regain the trust of investors.
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