BRASILIA, May 5 (Reuters) - Brazil's central bank made its second consecutive interest rate increase of 75 basis points on Wednesday and flagged another coming in June, as rising inflation forces one of the world's most aggressive rate-hiking cycles despite pandemic headwinds.
The decision to raise Brazil's benchmark rate to 3.50% had been signaled clearly by central bank officials, reflecting their greater concern with inflation over the drag to economic growth from a deadly second wave of the COVID-19.
With 12-month inflation running at 6.1%, well above the central bank's year-end target of 3.75%, the bank's rate-setting committee, known as Copom, said it expected another hike of the same size to the benchmark Selic rate at its next meeting.