Reported 11 months ago
Brazil's Finance Minister Fernando Haddad raised concerns about the country's fiscal outlook in a meeting with investors, causing a drop in assets. He indicated the need for significant spending cuts to meet fiscal targets unless proposed revenue measures are approved by Congress. This led to a negative market reaction, with the real weakening against the US dollar and swap rates surging. Haddad later clarified that he did not suggest changing fiscal rules, but investor skepticism remains over Brazil's fiscal deficit elimination goal amid pressure to increase spending.
Source: YAHOO