The market is keeping an eye on this Tuesday (13) for the unfolding of the demonstrations in Brasília, but the focus is on understanding how the composition of the elected government’s economic team will be.
Investors were also expecting inflation data from the United States, released today at 10:30 am, and the monetary policy meeting of the Federal Reserve (US BC), whose result will be released tomorrow afternoon.
Around 11:11 am, the Ibovespa rose 0.96%, to 106,355, following the exterior and in a correction movement after losses the day before. The commercial dollar fell 0.74%, quoted at R$ 5.273 on sale.
The day begins with the release of the minutes of the last meeting of the Monetary Policy Committee (Copom), which maintained the Selic rate at 13.75% per annum. The BC hardened the message about the risks that the fiscal disarrangement can cause. The document cites the fiscal word eleven times. In October, at the previous meeting, he had mentioned only four.
For the first time in many years, the Committee’s official communication made reference to the risks that so-called paraffinic policies can cause. Among them is the loss of power of monetary policy.
In other words, the Central Bank said that the increase in interest rates could lose effect if some choices were made by the new government. Changes in quasi-fiscal measures was a clear reference to the return of public banks to the role of credit via BNDES and BB.
The document also cited that a “reversal of structural reforms” could cause a loss of efficiency in the Central Bank’s strategy. Here, the directors of the monetary authority deal with rumors of the return of the TJLP of the BNDES (subsidized credit), threat to the law of state-owned companies, among others.
According to the minutes, controlling inflation will depend not only on monetary policy, but also on the magnitude of the burst in spending.
The day before, the dollar traded on the interbank market rose 1.26%, to R$5.3121, the highest daily appreciation since last Monday (+1.35%) and the highest closing level since November 28 (R$ 5.3645).
*With information from Thais Heredia and Reuters.
Source: CNN Brasil
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