Brazil's Central Bank unexpectedly raises interest rate

Brazil’s Central Bank unexpectedly raises interest rate

Brazil's Central Bank unexpectedly raised short-term interest rates 0.25 points to 19.5% on April 20, 2005. The continued pressure of domestic price increases along with expectations of rising inflation prompted the bank's surprise decision. In a brief statement, the Central Bank's committee said it was continuing the process of adjusting the basic interest rate, a process that began after the Bank's September 2004 meeting.