Brazilian markets rallied on Thursday as the central bank’s unanimous decision to raise interest rates — and a statement viewed as hawkish — signaled its commitment to getting inflation back to target.

Brazil's central bank kicked off an interest rate-hiking cycle on Wednesday with a 25 basis-point increase, as expected, and signaled more increases ahead to tackle a challenging inflation outlook driven by stronger-than-expected economic activity.

Brazil’s central bank raised its interest rate by a quarter-point and said more hikes are coming on resilient growth and inflation expectations, moving in the opposite direction of the Federal Reserve and regional peers.

Brazil's central bank on Wednesday announced its first interest rate hike in two years, raising the benchmark lending rate to 10.75 percent even as the US Federal Reserve decided to lower borrowing costs.