Brazil’s central bank has raised its benchmark interest rate by a quarter point, in an effort to curb inflation in the booming South American economy.

The bank’s monetary policy committee Wednesday increased the Selic rate to 12.5 percent, marking the fifth time this year that the rate has been boosted.

The government of President Dilma Rousseff has been trying to cool the economy, which grew 7.5 percent last year.

In February, the government said it would implement $30 billion in budget cuts to rein in growing inflation. The cuts are equivalent to 1.2 percent of Brazil’s total gross domestic product for this year.

Inflation has climbed to about 6.75 percent, up from the government’s target of 6.5 percent.

Brazil also has taken steps to stop the rise in value of its currency, the real, as part of an effort to stabilize its financial system. The measures make it more expensive for Brazil’s commercial banks to invest in the currency.

President Rousseff has promised to resolve the currency imbalance that is hurting some Brazilian industries that export their products.

Brazil is Latin America’s biggest economy. It is now considered one of the world’s major emerging economies.