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Brazil central bank chief links monetary policy to rising fiscal risks

Brazil"s central bank chief, Roberto Campos Neto, indicated that monetary policy is increasingly influenced by fiscal policy. This shift comes as rising risk premiums on long-term interest rates raise concerns about the country"s debt trajectory.

brazil central bank expected to raise interest rates amid fiscal concerns

Brazil's central bank is expected to raise its key interest rate by 0.5 percentage points to 11.25% amid rising inflation concerns linked to public spending. This marks a significant acceleration in its tightening campaign, which began in September, as investors react to fiscal challenges. Most traders see a minimal chance of a larger 0.75 percentage point hike.
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