Brazil's public debt up 0.71% in July on the back of interest expenses

SAO PAULO, Aug 27 (Reuters) - Brazil's federal public debt grew 0.71% in July from the previous month, boosted by interest payments, the Treasury said on Wednesday.

The public debt of Latin America's largest economy reached 7.9 trillion reais ($1.46 trillion), with net debt redemptions of 33.8 billion reais unable to offset interest expenses of 89.6 billion reais in the month.

Year to date, federal debt has increased by 623 billion reais, driven by interest payments of 482.4 billion reais. Net debt issuance over the same period amounted to 140.5 billion reais.

July also saw a renewed increase in the average cost of 12-month domestic debt issuance, which rose to 13.68% from 13.52% in June.

Brazil's central bank last month interrupted a tightening cycle that had added 450 basis points to its benchmark interest rate, bringing it to 15%, the highest level in almost 20 years.

($1 = 5.4212 reais)