The Monetary Policy Committee (Copom) of the Central Bank (BC) maintained, last Wednesday (8), the Selic rate at 13.75% pa, as expected.
In the communiqué that followed the meeting, the Copom, however, gave a clear message that, depending on how public spending with the PEC unfolds, a new monetary tightening may happen, or interest rates remain at a high level for longer.
In Wednesday’s analyses, it was almost unanimous that the Selic reduction, expected for the middle of next year, should be left in the background. With the country at a high level of indebtedness, the tendency is for more inflation, which may force the BC to restart the cycle of interest rate hikes, keeping the economy cooler for longer.
The PEC of the Explosion — approved in the Senate plenary yesterday — is moving forward at great strides, in order to attest to the governability of President-elect Luiz Inácio Lula da Silva (PT) and, at the same time, reinforce concerns about the public debt.
Although the backbone of the text was reduced from BRL 175 billion to BRL 145 billion, the device that provides resources for investments in the face of an extraordinary collection, such as that of 2022, was maintained at BRL 23 billion — a “hanger” which can complicate the country’s accounts.
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*Posted by Tamara Nassif
Source: CNN Brasil
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