Brasilia - Brazil's Central Bank announced Wednesday it will keep its key interest rate at a historic low of 7.25%.
The bank's monetary policy committee (Copom) opened its meeting Tuesday but announced its unchanged rate decision late Wednesday after markets closed.
Analysts, however, believe the rate will head upward later in the year because inflation is above the level forecast by the Central Bank.
In 2012, growth in the world's sixth largest economy slowed for the second year in a row, reaching an anaemic 0.9 percent, its worst performance in three years.
Inflation meanwhile closed 2012 at 5.84 percent, above the centre of the official target of 4.5 percent but below the upper limit of 6.5 percent.
In January, inflation rose 0.86 percent, the highest level for this month since 2003 to reach an annualised rate of 6.15 percent. - Sapa-AFP