Folha de São Paulo: 12/06/2022
Andrea Damico, partner, and chief economist at Armor Capital, affirms that the R$ 150 billion or R$ 200 billion of extra spending will imply significant debt growth next year. Also, the Central Bank will likely reinforce the message about the importance of fiscal responsibility, with some anchor to assure further debt stabilization.
If this will not be observed, she does not discard that interest rates will be maintained at the current level until 2023 year-end.
Monetary Policy Committee (Copom) might keep the interest rate at 13.75%, and send a message to Lula about fiscal risk, according to analysts
Economists also see the possibility of an eventual Selic rate cut being postponed next year
The Central Bank might keep the basic interest rate at 13.75% next Copom (Monetary Policy Committee) meeting this Wednesday (7th), but it is also expected that the monetary authority sends messages to the government-elect of Luis Inácio Lula da Silva (PT) regarding the risks of fiscal policy to inflation.
link: https://www.cnnbrasil.com.br/business/juro-futuro-atinge-maior-nivel-desde-2016-mercado-ve-selic-a-15-no-1-semestre-de-2023/
