Home Politics “Super Wednesday” involves decisions on PEC, secret budget and Selic

“Super Wednesday” involves decisions on PEC, secret budget and Selic

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“Super Wednesday” involves decisions on PEC, secret budget and Selic

The Brazilian economy reserves a “Super Wednesday” for today, with decisions that should stir the markets.

While the Monetary Policy Committee (Copom) of the Central Bank (BC) decides on the Selic rate, the PEC of the Burst goes to plenary in the Senate and the Federal Supreme Court (STF) must judge the Secret Budget.

Starting with the subject that has been on the news for the last few days, the PEC of the Explosion went through the first stage last Tuesday, at the Senate Constitution and Justice Committee, and underwent important changes.

Bolsa Família, for example, was kept within the spending ceiling, with the creation of additional space within the fiscal rule to accommodate the program. This alone has already boosted the Stock Exchange and more gains are expected this Wednesday, as investors digest the reduction in the final value of the PEC to R$ 168 billion, instead of the R$ 198 billion of the original proposal.

The judgment of the Secret Budget in the STF also holds great expectations. If the Supreme judges that the Centrão should no longer have the right to the rapporteur’s amendments, the kidnapping of the Budget by the Legislature decreases — but the Lula government may lose part of its bargaining power. Depending on the decision of the STF, it may be that the support of parliamentarians for the president-elect suffers a blow, and part of the public funds destined for negotiations with Congress will be affected.

This Wednesday still reserves the Copom’s decision on the Selic rate. Although interest rates are expected to remain at 13.75% per annum, the announcement after the decisive meeting could bring hard messages to the market, including renewing the possibilities of new hikes due to increased fiscal risk.

In today’s episode, CNN Money discusses the perspectives of this “super Wednesday” and analyzes what is at stake in the decisions that should guide the markets from now on.

Presented by Thais Heredia and Priscila Yazbek, the CNN Money it presents a balance of the news subjects that influence markets, finances and the direction of society and the dynamics of power in Brazil and in the world.

*Posted by Tamara Nassif

Source: CNN Brasil

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