Brazil Central Bank Raises Interest Rate Amid Global Cuts

Following the Federal Reserve's decision to reduce U.S. interest rates by 25 basis points, most Gulf Cooperation Council (GCC) central banks, including Saudi Arabia and the UAE, cut their rates by the same margin. Meanwhile, Brazil's central bank raised its benchmark rate to 11.25%, marking the second consecutive increase to combat rising inflation driven by domestic and international economic uncertainties. This move contrasts with the global trend of lowering rates, as Brazil's policymakers seek to address inflation expectations heightened by concerns over public spending. The Brazilian rate hike reflects a broader tightening strategy initiated in September, indicating potential for further increases.