UPDATE - Brazil raises rates by larger-than-expected 75 bps (at Reuters)

BRASILIA, Brazil, July 23 (Reuters) - Brazil's central bank raised its benchmark lending rate on Wednesday by a larger-than-expected 75 basis points to 13 percent, lifting borrowing costs for the third time in four months to curb resurgent inflation. The bank's monetary policy committee, known as Copom, voted unanimously for the increase. The committee raised the so-called Selic rate by 50 basis points at its last two meetings in April and June, citing concerns about inflation. In a brief statement, the committee said it opted for a steeper rate increase this time to push "inflation toward the target in a timely manner." In a Reuters poll last week, only 13 of 37 economists predicted the Copom would lift the Selic by 75 basis points. The remaining 24 bet on a 50-basis-point increase to 12.75 percent. With... [read full story]