Brazil raises interest rate to 9%

Brazil has raised its benchmark interest rate to 9% from 8.5% in a further attempt to rein in inflation, following the dramatic sell-off in the country's currency.

The central bank's monetary policy committee, the Copom, voted unanimously for a third straight half percentage point rate rise - also the country's fourth increase since April - as it struggles to contain rampant price rises. With emerging market currencies all plunging in value against the dollar in recent months - the Brazilian real has fallen in value from $0.51 to $0.42 since April, a 20% slump - inflation has spiked. The country's main inflation rate is currently 6.15%, as the soaring cost of imports pushes up prices. Other emerging nations, including in southeast Asia, have ...