Brazil raises interest rate by 50 bps to tame inflation

BRASILIA, July 10 Wed Jul 10, 2013 7:16pm EDT

BRASILIA, July 10 (Reuters) - Brazil raised its benchmark interest rate to 8.50 percent from 8 percent on Wednesday, maintaining the pace of monetary tightening to fight above-target inflation in Latin America's largest economy.

Fifty-five out of the 57 analysts polled by Reuters last week correctly predicted the central bank would opt for a second straight 50-basis-point increase in the so-called Selic rate.

The decision by the bank's monetary policy committee, known as Copom, was unanimous.