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Brasil's central bank directors voted 5 to 2...to raise its Selic benchmark interest rate by 25 basis points...to 12%.
Two directors wanted...an even higher 50 point increase.
Many economists also predicted an increase of 50 basis...because of Brasil's historic bugaboo -- runaway inflation.
New c.bank President Alexandre Tombini (pictured) is trying to fight price rises yet not kill growth...as well as fight off an overvalued currency with an interest rate that attracts much foreign "hot money."
Inflation has reached 6.44%--its fastest rate in more than two years.
Yet growth is slowing...after expanding by 7.5 % last year.
The REAL is now valued at 1.5663 per usd...its strongest since August 2008.
