At 13.25 percent, Brazil's towering interest rate looks totally out of line at first glance.
Expectations may have been pushed to later this year for when the U.S. Federal Reserve will hike interest rates, but a repeat of another steep sell-off in emerging market stocks appears unlikely as much has already been priced in - and because of the stronger dollar.
The rapid erosion of Brazil's job market is taking most economists by surprise, an analysis of Reuters Polls data shows, in a worrying sign that already-grim expectations for Latin America's largest economy have not been pessimistic enough.
Brazil's central bank's two-day policy meeting kicks off later on Tuesday with all bets placed on a fourth straight interest rate increase, despite growing consensus that the country is headed for its worst economic recession in 25 years.
Borrowing in dollars is like playing "Russian roulette", India's central bank chief Raghuran Rajan said on Bloomberg TV this week.
Just as ECB President Mario Draghi announced a massive bond-buying program to revive Europe's economy and fend off deflation fears, news of shockingly low inflation popped up elsewhere in the globe: consumer prices in Mexico dropped 0.19 percent in early January, far below all 19 forecasts in a Reuters poll.