The Central Bank of Brazil raised its interest rates by one percentage point on Wednesday, due to persistent double-digit inflation and evidence that price expectations are further away from official targets.

The bank’s rate-setting committee, known as Copom, raised its benchmark Selic interest rate to 12.75%, a five-year high.

All 32 economists polled by Reuters had forecast the decision after policymakers decided on a 100 basis point hike in March and anticipated the same for this month.

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