RIO DE JANEIRO, BRAZIL - This year, the Central Bank of Brazil has initiated a cycle of rate hikes to bring them to a current level of 7.75% before the next monetary policy decision, which will happen this Wednesday (8).
According to the report, this cycle of increases in the price of money "could deteriorate the country's public finances", as they are "susceptible to changes in monetary policy".
The text explains that the loss of fiscal consolidation initiated in 2016 and the depreciation of the Brazilian real (R$) have increased inflationary pressures, forcing the central bank to raise rates . . .
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