Brazil's Inflation Hits 2-Year High, Rate Hike Uncertainty Looms

Brazil's annual inflation has reached a two-year high of 5.48% in March, with policymakers mulling the size of their next interest rate hike. Despite three-straight full-percentage point rate hikes, inflation remains above the 3% target. The central bank is poised to increase the key rate further to bring down prices, but investors are debating how much higher the benchmark Selic needs to go. Consumer anger towards President Luiz Inacio Lula da Silva has led to a decline in his approval ratings.