BRASILIA, March 19 (Xinhua) -- Brazil's central bank on Wednesday raised its annual benchmark Selic interest rate from 13.25 percent to 14.25 percent, marking its fifth consecutive hike since the monetary tightening cycle began in August.

The rate increase, unanimously approved by the bank's nine-member Monetary Policy Committee, aligns with market expectations and aims to curb rising inflation pressures. Analysts estimated that inflation will reach 5.66 percent this year, above the official upper limit of 4.5 percent.

In a statement, the committee cited persistently high inflation forecasts, robust economic activity and ongoing labor market pressures as reasons for a tighter monetary policy.

The committee indicated another possible rate hike at its next meeting, though smaller than the latest increase, taking into account the persistence of adverse inflation conditions, heightened uncertainty and typical delays in monetary policy tightening.

It said future decisions will depend on inflation dynamics and reaffirmed its commitment to bringing inflation down to target levels. Enditem

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