Brazil Denies Plan to Cap Interest Rates
Dario Durigan said the government is not studying a Selic cap as markets price an 83.8% chance of no change, Polymarket data showed.
- Finance Minister Dario Durigan stated on Monday, November 2, that no meeting is scheduled between President Luiz Inácio Lula da Silva and economist André Lara Resende, addressing days of market speculation.
- Market chatter regarding Lara Resende's economic ideas intensified recently, fueling speculation about potential influence on government policy direction and monetary decisions.
- Durigan also clarified on Monday that the government is not studying a cap or freeze on the Selic, which currently stands at 13.75%.
- The central bank's rate committee, Copom, meets on November 3 and 4, marking the first test of whether rate cuts continue amid political pressure.
- Prediction markets on Polymarket currently price a "no change" decision at 83.8%, as inflation remains above the 3% target, keeping borrowing costs elevated.
41 Articles
41 Articles
Brazil's Lula not weighing proposal to slash interest rates, minister says
Brazil's re-elected President Luiz Inacio Lula da Silva is not considering a proposal from an influential economist to slash benchmark interest rates as a way to reduce the government's debt burden, Finance Minister Dario Durigan said on Tuesday.
Brazil Rejects Rumors of State Intervention in Monetary Policy
Brazil's Ministry of Finance has officially rejected reports of planned state intervention in the country's monetary policy. Deputy Finance Minister Dario Durigan stated that the administration of President Luiz Inácio Lula da Silva does not intend to implement interest rate ceilings or deploy foreign exchange reserves to prevent capital flight. The clarification follows market volatility triggered by reports of a potential meeting between the p…
Economist Lara Resende's proposal would be circulating within the government; petists deny
Left-wing sectors and leaders linked to President Lula have been promoting, in recent days, economist André Lara Resende as an opponent of the
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