The Central Bank of Brazil considered that the expansion of public spending might increase inflation expectations and have repercussions on the financial system, according to the minutes of last week's meeting of the Financial Stability Committee (Comef), released yesterday evening, Thursday, Nov. 24.
According to the document, the "breach of confidence in the fiscal regime" could affect the financial sector's stability.
The Comef, formed by the directors and the president of the Central Bank of Brazil, establishes guidelines to maintain financial stability and prevent risks in the sector.
The body detailed that the results show that the system . . .