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LatinNews Daily - 06 May 2021

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In brief: Brazil’s central bank raises interest rates again

* The monetary policy committee (Copom) of Brazil’s central bank (BCB) has raised the benchmark interest rate (Selic) by 75 basis points to 3.5%, the second consecutive sharp rate hike. The increase in the Selic had been widely expected, and the Copom indicated that another 75 basis-point hike is likely when it next meets in June, in a bid to keep inflation under control. Brazil’s annual inflation rate stood at 6.1% in March, well above the BCB’s 3.75% target. The Copom has said it is working with a baseline scenario of 5.1% inflation this year.