Brazil's central bank on Wednesday raised interest rates by 150 basis points, stepping up its battle against a deteriorating inflation outlook after the government moved to loosen its constitutional spending limit.
Brazil's central bank on Wednesday raised interest rates by 150 basis points and signaled another such hike this year, stepping up the world's most aggressive tightening cycle after the government moved to loosen its constitutional spending limit.
Four senior Brazilian Treasury officials resigned on Thursday amid signs the government is looking to lift a constitutional spending cap, hammering Brazil's stocks and currency while driving up interest rate futures.
Brazilian stocks tumbled on Thursday to an 11-month low, while interest rate futures jumped and the currency weakened on fears that the government will bend a constitutional spending cap.
The International Monetary Fund said on Wednesday Brazil's economic performance has been better than expected "in part due to the authorities' forceful policy response" as the economy emerges from the pandemic slowdown.