Uncertainties about fiscal policy in the Luiz Inácio Lula da Silva (PT, progressive-globalist) government give room for the maintenance of monetary tightening for a longer period of time, which would lead to a smaller reduction in the basic interest rate (Selic) in 2023.
This is the interpretation of the financial market: in the last four weeks, the median of expectations for the Selic at the end of next year rose from 11.25% to 11.75%, according to the Focus bulletin of the Central Bank.
The trend for the Monetary Policy Committee (Copom) meeting that ends this Wednesday . . .