Brazil's central bank has today announced new bank sector requirements designed to rein in inflation by increasing the amount of money banks had to deposit with the institution.
The central bank said the mandatory deposits would be raised from 15% to 20% for long-term placements and from 8% to 12% for the rest.
That would have the effect of withdrawing around $36 billion from the market, thus limiting the amount of money the banks could loan to individuals.
The decision reversed an easing of deposit requirements allowed after the 2008 global financial crisis to increase liquidity.
Brazil's economy is forecast to grow 7.5% this year. But inflation has been growing and is estimated at around 6% - above the government target of 4.5%.
President Luiz Inacio Lula da Silva is to step down next month, handing power over to his former cabinet chief Dilma Rousseff, who has pledged to uphold his record of financial stability for Brazil.
