June 20 (Reuters) - The Brazilian real rose on Thursday

and domestic stocks rallied after the central bank halted a

rate-cutting cycle in a unanimous decision, offering relief to

investors worried about divergent views among policymakers.

The real, among the worst performing emerging market

currencies this year, rose to 5.4134 per dollar, having touched

a more than five-month low in the prior session.

The bank's rate-setting committee, known as Copom, held the

Selic benchmark interest rate at 10.50% on Wednesday, raised its

inflation projections and introduced an alternative scenario

with steady rates next year.

"Looking forward, Copom's updated inflation forecasts put

our more hawkish monetary policy call of a Selic rate stable at

10.50% until end-2025 in an even more comfortable position

(consensus at 9.50%)," Citi economist Leonardo Porto noted.

The committee's united front was a sharp contrast with May's

split decision, when directors tapped by the current government

dissented from slowing the pace of rate cuts, rattling markets

with questions about the monetary policy outlook.

Brazil's main Bovespa stock index rose 0.9% to touch

a one-week high, with state-owned oil company Petrobras

up 2.5% as crude prices climbed.

Mexico's peso and stock markets were under

pressure as investors awaited President-elect Claudia

Sheinbaum's announcement of her cabinet members.

Markets in Argentina and Chile were closed for public

holidays.

Key Latin American stock indexes and currencies:

Latest Daily %

change

MSCI Emerging Markets 1095.17 -0.01

MSCI LatAm 2196.43 1.13

Brazil Bovespa 121362.40 0.92

Mexico IPC 53078.57 -0.46

Chile IPSA - -

Argentina MerVal - -

Colombia COLCAP 1381.89 0.1

Currencies Latest Daily %

change

Brazil real 5.4134 0.50

Mexico peso 18.3915 0.09

Chile peso - -

Colombia peso 4189.4 -0.67

Peru sol 3.8158 -0.21

Argentina peso (interbank) - -