The market reacted negatively to the draft of the “PEC do Explosion” released on Thursday night (16) by Vice President Geraldo Alckmin.
This morning, the dollar was approaching BRL 5.50, the Ibovespa retreated 2.36% and future interest rates surpassed the worst period of the Bolsonaro government, breaking a record.
According to the published text, the overflow in the spending ceiling could reach R$ 198 billion: R$ 175 billion from the Bolsa Família program and another R$ 23 billion in extraordinary revenue that would be directed towards investments, in addition to undefined amounts of donations to universities and environmental programs.
The yield curve, which measures the country’s solvency capacity, took a new leap of 40 to 50 points, breaking a record and surpassing the levels of June this year. That month, the Bolsonaro government proposed and later approved the Kamikaze PEC, which circumvented the electoral law and raised the value of the Auxilio Brasil program.
In the view of market operators, the perception is growing stronger that the president-elect Luiz Inácio Lula da Silva is moving towards a developmentalist economic policy, similar to the one adopted in the Dilma Rousseff government and which led the country into recession.
Lula’s declarations help consolidate this perception. Today, at Cop-27 in Egypt, he once again stated that it is necessary to break the spending ceiling in order to be socially responsible that “the stock market will drop, the dollar will rise, be patient”
Source: CNN Brasil
A journalist with over 7 years of experience in the news industry, currently working at World Stock Market as an author for the Entertainment section and also contributing to the Economics or finance section on a part-time basis. Has a passion for Entertainment and fashion topics, and has put in a lot of research and effort to provide accurate information to readers.
