Interest rates rise more than 1% after Lula’s criticism of BC and strong dollar

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Future interest rates started this Thursday (19) on a high, accompanying the strong dollar against the real, with an increase of more than 1%, and after criticism by President Luiz Inácio Lula da Silva of the independence of the Central Bank (BC) and the current inflation target.

Lula questioned what good is an independent BC if inflation and interest rates are high.

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The president also said that the goal to be pursued for this year is exaggerated and requires a “tightening” in the economy with an increase in interest rates. The statements were given in an interview with GloboNews.

The market is also waiting for the Treasury’s LTN and NTN-F auctions (11 am). According to the senior fixed income operator at Warren Renascença, Luis Felipe Laudisio, the prefixed auction should remain “more in demand”.

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“The big question is how the National Treasury should react, given a slightly more volatile scenario. Longer vertices of pre papers, have an opening around 30bps and theoretically it should not be an obstacle for the TN to continue offering a greater amount of papers, given the demand”, says in a report.

At 9:11 am this Thursday, the interbank deposit (DI) rate for January 2027 rose to 12.76%, from 12.42%, and that for January 2025 went to 12.81%, from 12.53% in the previous setting. The DI for January 2024 was at 13.58%, up from 13.45% in Wednesday’s adjustment.

Source: CNN Brasil

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