BRASÍLIA: Brazil's central bank raised its benchmark interest rate Wednesday by a larger-than-expected 0.75 point, to 2.75 percent, as rising inflation forced it to reverse its pandemic stimulus stance.

It was the first rate hike in six years for Latin America's biggest economy, which weathered last year's Covid-19 meltdown relatively well but now faces signs of another slowdown just as a surge in virus cases and deaths wreaks new havoc.