Brazil Says Extending Half-Point Rate Increases Is Correct

Brazil’s central bank said it’s appropriate to carry on with half-point interest rate increases in a bid to ensure inflation pressured by a weakening real won’t hurt demand and investments.

Policy makers, led by President Alexandre Tombini, voted unanimously last week to raise the benchmark Selic rate to 9 percent from 8.50 percent, marking the third straight 50 basis-point increase. The central bank’s monetary policy will help mitigate the impact of the world’s biggest major currency decline in the past three months, policy makers said in the minutes of their Aug. 27-28 meeting.