Brazil Holds Key Rate at 11% as Economy Risks Stagflation

Brazil kept borrowing costs unchanged for the second straight meeting, as slowing growth gives the central bank no leeway to raise rates with inflation running above the upper limit of its target.

The bank’s board, led by its President Alexandre Tombini, today held the benchmark Selic at 11 percent, as forecast by all 57 economists surveyed by Bloomberg. The central bank lifted borrowing costs by 375 basis points in the year through April before halting May 28.