Brazil Raises Interest Rate to Nearly Two-Decade High of 14.75%

Brazil's central bank increased its interest rate to 14.75%, the highest in almost two decades, to combat rising inflation.

This means it costs more for people and businesses to borrow money.

They're trying to slow down the economy and stop prices from going up too much.

Inflation is when things get more expensive.

The bank is worried about both the world economy and things happening in Brazil.

Some economists think they might stop raising rates soon, while others think they might increase the rates more.

The price of food and other things are causing inflation.

The bank is aiming to bring inflation down to 3% by 2026.

The US economic policy is also playing a part.