Brazil's Central Bank raised its benchmark interest rate by 25 basis points to 10.75%, initiating its first rate hike in two years. This decision, driven by rising inflation and robust economic activity, contrasts the U.S. Federal Reserve's recent rate cut. The unanimous decision by the bank's Monetary Policy Committee suggests a commitment to controlling inflation despite new leadership under Gabriel Galípolo, who will succeed Roberto Campos Neto next year. Investors had anticipated the move, interpreting it as a signal of more hikes to come. The real initially gained but later trimmed gains against the dollar following the announcement.