Brazil's Central Bank has increased a key interest rate to 9.5 percent. Its benchmark Selic rate had stood at the record low of 8.75 percent since last July.

The move Wednesday reflects worries that Brazil's economy is expanding too rapidly and that inflation will spike as a result.

Increasing the Selic rate combats inflation by making credit more expensive for consumers, helping curtail spending.

Last week, the International Monetary Fund raised its forecast for Brazil's growth this year to 5.8 percent and warned that it was heating up too fast.

An economy that grows too quickly makes it difficult for suppliers of goods and services to meet demand, leading to rising prices.