The rises come as Brazil has been trying to rein in inflation.

It dropped the dollar peg in 2007 in a bid to rein in inflation.

That comment suggested to some that the bank would be less likely to try to rein in inflation.

Zimbabwe's central bank has repeatedly lopped zeros off the currency in a failed attempt to rein in inflation.

Then four years of macroeconomic instability, coupled with policies to slow growth and rein in inflation, created a cash crunch.

He pledges to maintain Mujica's tight monetary policy but has not detailed how he would rein in inflation, which stands at 9 percent.

The move could also help rein in inflation, an issue the central bank addressed separately on Monday with a rise in banks' minimum reserve requirements.

The quality of monsoon rains are important for not just the country's economic growth but also for reining in inflation and a mounting subsidy bill.