Brazil's central bank raised its benchmark interest rate by 100 basis points for the second straight meeting on Wednesday and signaled another hike of that size in March, leaving the door open for subsequent moves amid mounting inflationary pressures.

Gabriel Galipolo will chair his first interest rate decision as Brazil’s central bank governor on Wednesday with a clear, well-known mission: the board he now presides will raise the benchmark interest rate by a full percentage point for the second straight meeting.

The bank’s monetary policy committee increased the benchmark rate by a full percentage point to 13.25%.

Brazil's central bank on Wednesday hiked its key interest rate to 13.25 percent in more bad news for leftist President Luiz Inacio Lula da Silva's government, which is struggling to