Reported 25 days ago
The Central Bank of Brazil is signaling that investors' worries about the country's fiscal outlook may be overstated, despite ongoing concerns. The finance ministry and the monetary authority believe that an anticipated public spending reduction plan will restore confidence in fiscal rules and reduce the need for aggressive interest rate hikes. Although inflation is above the target due to increased government spending, officials now suggest that the risk premium on Brazilian assets is exaggerated and a positive fiscal adjustment could turn the situation around.
Source: YAHOO