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Brazil Raises Interest Rate To 9% To Battle Inflation

Thursday, August 29, 2013 - 5:58 PM
Brazil has raised its benchmark interest rate to 9% from 8.5% in a further attempt to rein in inflation.  A fall in the value of the Brazilian real has stoked inflation, currently 6.15%. The currency's fall has been blamed on an outflow of capital triggered by expectation that the US Fed will end its stimulus policy, leading to a stronger dollar.  The real has lost 20% of its value against the dollar since the start of the year.

Other emerging nations, including in southeast Asia, have suffered similar currency problems.

BBC News - Brazil raises interest rate to 9% to battle inflation
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