Brazil's government economic team set an inflation target of 4.5% for 2016, with a two-percentage-point leeway, making it the 12th successive year that it was set at this level.

The decision was made Wednesday night by the National Monetary Council, or CMN, which is Brazil's highest economic- policy-making body and includes the finance and planning ministers and the central bank president.

Given the current and future inflationary pressure, the government had little room to lower the target, as had been considered in previous years and as demanded by certain economists, who advocated that a lower inflation target could indicate a strong sign of the government efforts to combat inflationary pressures.

Currently, Brazil's official 12-month consumer price index is at 6.41% and it is expected to end this year at 6.46%, according to economists.

Brazil introduced its inflation targeting system in 1999 but missed its targets in 2001, 2002 and 2003, while in 2011 it reached the limit of the tolerance band at 6.5%. The target has been held at 4.5% annually since 2005

In other deliberations Wednesday night, Brazil'sNational Monetary Council decided to hold Brazil's TJLP long-term interest rate at 5% a year. The rate is used in loans to businesses made by the government-controlled Brazilian Development Bank, or BNDES.

The TJLP rate is set in accordance with inflation projections and foreign-debt spreads.