Interest rates are expected to fall this week with the decision of the Monetary Policy Committee (Copom) of the Central Bank. The expectation is that the fifth cut of the Selic will be made, again with a small dose of 0.25 percentage point, bringing the rate to 13.75%.
The big question among Central Bank directors and the institution's president is whether there will be the necessary and sufficient fiscal adjustment to allow a sustainable reduction in interest rates. Copom is focused on this issue to define its next steps.
The fiscal adjustment has indeed been made by the federal government, but, according to the article, it is insufficient at this point. The perception is that more robust measures will be needed to ensure the sustainability of the interest rate decline.
Everything indicates that the next government, regardless of who it is, will have to make fiscal adjustments. The article is exclusive for subscribers and was accessible only through registration at the provided link.




