BRASILIA, Dec. 17 (Xinhua) -- Brazil's Central Bank indicated in minutes from its latest Monetary Policy Committee (Copom) meeting, released on Tuesday, that it anticipates two additional increases to the Selic benchmark interest rate at the start of 2025.

The Central Bank cited the depreciation of the Brazilian real against the U.S. dollar, which recently surpassed 6 reals per dollar, as well as negative market sentiment surrounding the government's proposed fiscal package. These factors have significantly impacted both prices and future interest rate expectations.

At last week's meeting, Copom raised the Selic rate by one percentage point to 12.25 percent annually, marking the third consecutive hike.

The bank emphasized that the worsening economic outlook requires a tighter monetary policy, driven by the exchange rate's depreciation and concerns over achieving inflation targets.

Copom will closely monitor how the real's devaluation and financial conditions influence prices and economic activity going forward.

The Central Bank highlighted that its decisions focus on inflation projections rather than current data, as changes to the Selic rate typically take six to 18 months to impact the economy.

Brazil is targeting an inflation rate of 3.0 percent, with an allowable range between 1.5 percent and 4.5 percent.

On the global front, the Central Bank noted that external conditions remain "challenging," particularly amid economic uncertainty in the United States and potential fallout from protectionist policies under incoming U.S. President Donald Trump, which could impact exchange rates and interest rates.