Brazil's high inflation needs to be reversed-central bank

BRASILIA, Sept 5 Thu Sep 5, 2013 7:46am EDT

BRASILIA, Sept 5 (Reuters) - Resilient inflation in Brazil is hurting investment and consumption and needs to be reversed in a timely manner, according to the minutes of the central bank's most recent rate-setting meeting released on Thursday.

The central bank raised its benchmark interest rate for the fourth straight time last week, keeping the pace of monetary tightening to battle high inflation.

The bank also acknowledged that conditions are forming to put the fiscal balance on a neutral stance, changing language from previous statements.

The bank's monetary policy committee unanimously voted to hike the Selic rate by 50 basis points to 9 percent on Augt. 28 to ease inflationary pressures stoked by a sharp depreciation of the local currency.

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