Government worsened the expected primary result trajectory until 2028; measure could have an impact on the rate of interest cuts
The president of B.C. (Central Bank), Roberto Campos Neto, said that the loss of credibility in fiscal policy makes monetary policy more costly. He argued that the issues are related and reinforced his concern at an event for investors organized by XP in Washington, USA. “If you lose credibility or if you are heading towards a scenario of greater uncertainty about the fiscal anchor, this makes the work of the other side more costly”he declared.
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