Brazil's central bank last increased the selic rate by 25 basis points to 12.25% in June this year. Brazil's high interest rate is one of the factors keeping the Real strong as speculators chase the high interest rate differential. Brazil last reported an annual inflation rate of 6.55%, compared to the official inflation target of 4.50%. The Brazilian government is forecasting economic growth this year of 4.5-5%, compared to GDP growth of 7.5% during 2010. The Brazilian Real last traded around 1.56-1.58 against the US dollar.