The Brazilian central bank has increased interest rates to ten per cent.
It is now higher than at any point in the last 18 months, with Brazil battling high rates of inflation.
The country's economy has been expanding quickly in recent years and it was mostly unaffected by the global financial slowdown.
Brazil will host the Fifa World Cup next year and the Olympic Games in 2016, with the South American nation making a massive investment in infrastructure upgrades in order to get ready for the influx of visitors.
Among the reasons for the rise in interest rates is the weakness of the Brazilian real, with the currency down 20 per cent against the US dollar compared to the start of the year.
Consumer prices in the country were recently revealed to have risen by 5.8 per cent in October from a year earlier, which was well above policymakers' 4.5 per cent target.
Brazil's currency has also been damaged by factors such as investors fearing the US is soon going to start tapering its quantitative easing scheme.
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