Brazilian economists have adjusted their inflation forecasts, predicting the annual IPCA inflation index will reach 4.00% in 2024, up from a previous estimate of 3.98%, and 3.87% in 2025, up from 3.85%, according to a central bank poll. Central Bank Director Gomes emphasized the commitment of the rate-setting board to achieving the inflation target, highlighting the challenges posed by an expansionary fiscal policy on disinflation and its impact on the exchange rate. Gomes noted that disinflation becomes very costly under such policies. President Luiz Inacio Lula da Silva has intensified his criticism of the central bank, stressing the need for its autonomy and condemning its perceived alignment with financial markets. Lula also called for action against speculation against the real. Finance Minister Haddad echoed the importance of central bank autonomy and a strict fiscal framework to stabilize markets, while also dismissing the possibility of taxing foreign exchange transactions. Haddad mentioned he is working on a fiscal agenda with President Lula.
⚠️ BRAZIL'S HADDAD SAYS CENBANK AUTONOMY, STRICTNESS OF FISCAL FRAMEWORK IS WHAT WILL CALM MARKETS DOWN
⚠️ BRAZIL'S HADDAD SAYS GOVT NEEDS TO IMPROVE COMMUNICATION ABOUT CENBANK AUTONOMY, FISCAL FRAMEWORK
⚠️ BRAZIL'S HADDAD SAYS THERE IS NO POSSIBILITY OF TAXING FOREIGN EXCHANGE TRANSACTIONS **BRAZIL'S HADDAD SAYS HE IS WORKING ON FISCAL AGENDA WITH PRESIDENT LULA ** BRAZIL'S HADDAD SAYS BEST MOVE TO HELP BRAZILIAN CURRENCY IS GETTING COMMUNICATION RIGHT
President Luiz Inacio Lula da Silva escalates his attacks on Brazil’s central bank, saying it needs to be really autonomous and not “owned” by financial markets https://t.co/nTnt9dtAMh
Lula escalates his attacks on Brazil’s central bank, saying it needs to be really autonomous and not “owned” by financial markets, @simoneiglesias reports https://t.co/eQcV2HAYQd
⚠️ BRAZIL'S LULA: CENBANK NEEDS TO KEEP WORKING IN AN AUTONOMOUS WAY
⚠️ BRAZIL'S LULA: WE NEED TO DO SOMETHING ABOUT SPECULATION AGAINST REAL
Brazil's central bank director says expansionary fiscal policy harms disinflation https://t.co/8GhLe0xUuj https://t.co/tsIcxeVaZS
⚠️ BRAZIL'S GOMES: RATE-SETTING BOARD HAS FULL COMMITMENT IN PURSUING INFLATION TARGET
⚠️ BRAZIL CENTRAL BANK DIRECTOR GOMES IF FISCAL POLICY IS ALWAYS EXPANSIONARY YOU PUT A LOT OF PRESSURE ON EXCHANGE RATE OR MONETARY POLICY **BRAZIL CENTRAL BANK DIRECTOR GOMES DISINFLATION BECOMES VERY COSTLY ** BRAZIL'S GOMES: IT IS ESSENTIAL THAT WE ADVANCE THE FINANCIAL…
⚠️ BRAZIL ECONOMISTS SEE ANNUAL IPCA INFLATION INDEX REACHING 4.00% IN 2024 VS 3.98% IN PREVIOUS ESTIMATE - CENBANK POLL ** BRAZIL ECONOMISTS SEE ANNUAL IPCA INFLATION INDEX REACHING 3.87% IN 2025 VS 3.85% IN PREVIOUS ESTIMATE - CENBANK POLL **BRAZIL ECONOMISTS SEE YEAR-END…