Economics
Brazil Economic Team Enlists Investor Help as Rate Bets Soar
- Rates curve begins to price 75 basis-point Selic hike in March
- Fiscal concern and worsening pandemic take a toll on markets
This article is for subscribers only.
Brazil’s economic team is enlisting investors to help it defend a rule that caps public spending, as growing fiscal concerns sink local markets and push traders to bet on the most aggressive interest rate hike in a decade.
Members of Economy Minister Paulo Guedes’s crew and the Treasury have asked fund managers and economists to publicly defend the so-called spending ceiling that limits the growth in public expenditures to the inflation rate, according to three people with knowledge of the matter who asked not to be named as the information isn’t public.