The decision, expected by the financial market, has broken up the consecutive reduction in the basic interest rate that began in July last year to stimulate economic activities.
According to the Copom, the prices of basic foods, such as rice and beans, rose in recent weeks as the government's emergency financial aid for low wage earners due to the COVID-19 pandemic has led to an increase in demand.
The Copom warned in August that Brazil was already close to the level where additional cuts in interest rate could generate price instability.
Brazil's economy is expected to contract 5.11 percent this year but to rebound with a 3.5-percent growth next year, according to government estimates.
Latest comments