Yesterday Central bank of Brazil moved up its standard interest rate for the first time ever since July, and indicated that it will in addition trust in administrative measures to control the development of credit to wrestle the fast moving inflation in two years.

Policy designers headed by Alexandre Tombini, presiding over his initial conference as bank chief, voted collectively yesterday to increase the Selic rate to 11.25 percent by 50 basis points, corresponding to the prediction of 49 of 51 analysts during a review made by Bloomberg.

In a one-sentence statement, the bank stated that it was starting a "procedure of fine-tuning" in rates that together with "macro prudential" actions will de-accelerate inflation to its 4.5 percent objective.

In a phone interview, Marcelo Salomon, chief economist for Brazil at Barclays Plc in stated that the central bank confronts restrictions in just making use of the interest rates," "It doesn't arrange to only use rate boost in opposition to inflation, provided the worldwide doubts and the government's necessity to hold the approval of the real."