In an interview with CNN economics commentator Alexandre Schwartsman assessed that the instability of the Brazilian Stock Exchange is due to the lack of definition of a name at the head of the Ministry of Finance and the fiscal plan of the next government for the 2023 Budget.
“Volatility in the markets will continue until the hammer is struck. We continue to face the turmoil abroad, with the consistent advance of interest rates in central banks around the world, but the highlight is the ambiguities that are emerging in the post-election”, Schwartsman told CNN Visão this Tuesday (8) .
“It is not known who will be the name at the head of the Ministry of Finance and, more importantly, what will be the plans regarding spending and taxation in the coming years. We know there will be a spending truck in 2023, that’s right.”
This morning, around 10:30 am, the market was operating with some stability, with caution about which names should compose the economic team of president-elect Luiz Inácio Lula da Silva (PT), while the dollar extended gains from the day before, up by 0, 47%.
The markets, according to the expert, expect a name that “is capable of carrying out policies that point to the stability of public debt” and a definition of economic policy.
The transition team of the next government intends to create a PEC to guarantee an exceptionality to the spending ceiling and adapt next year’s Budget to Lula’s campaign promises, such as the maintenance of the R$ 600 of Auxílio Brasil and the real readjustment of the salary Minimum.
Check out the full interview in the video above.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
