The Monetary Policy Committee (Copom) increased the selic rate for the fifth time this year, arguing that rate hike will contribute to set the inflation on a downward trend and ensure that it continues to decline throughout next year.
The central bank made no changes to the statement accompanying its decision, suggesting it could raise rate once again in its next meeting, in November.
In September, annual inflation rate slowed for the third month in a row to 5.83 percent, the lowest rate this year. However, on a monthly basis, prices accelerated in September for the second consecutive month to 0.35 percent.
The Central Bank targets the inflation rate at 4.5 percent plus or minus two percentage points.