Brasília - Yesterday the Central Bank's Monetary Policy Committee (Copom) announced its decision to raise the country's basic interest rate (known as the Selic) from 16% to 16.25%. The increase comes after the Selic remained steady at 16% for five consecutive months. The Copom vote on the increase was not unanimous. There were five votes for the 0.25 percentage point increase, and three votes for a 0.50 percentage point increase.

According to a note from Copom, the increase is the beginning of a process of moderate adjustments to the country's basic interest rate so as to ensure that inflation does not hinder the recovery of real wages or sustained economic growth.

Agência Brasil
Reporter:Bruno Bocchini
Translator: Allen Bennett
09/16/2004