BRASILIA, March 17 (Xinhua) -- The Central Bank of Brazil's Monetary Policy Committee (Copom) on Wednesday raised the benchmark interest rate from 2 to 2.75 percent annually, the first increase since July 2015.

　　The lastest benchmark interest rate is higher than market estimates, which expected an increase of 0.50 percent.

　　"The current scenario no longer prescribes an extraordinary degree of stimulus," said the committee, adding that Brazil's gross domestic product (GDP) ended 2020 with strong growth in the margin, "recovering most of the decline seen in the first half of the year."

　　"In addition, inflation forecasts have risen to levels close to the upper limit of the target in 2021," it added.

　　According to the bank's weekly survey of leading financial institutions released on Monday, the financial market has forecast inflation of 4.6 percent this year.

　　While the forecast falls within the government's target rate of 3.75 percent with a margin of tolerance of 1.5 percentage points up or down, it is beginning to move away from the center of the target set by the National Monetary Council.

　　Most financial market analysts expect the benchmark interest rate to reach 4.5 percent by the end of the year.