Itaú bank warns shareholders about risks posed by Lula da Silva’s economic policy
Itaú bank’s asset management arm, Itaú Asset, issued a warning about the impacts of Brazil’s economic policy under Lula da Silva’s (PT) government.
In a letter sent to shareholders, Itaú says that the government’s first actions go in the opposite direction to the fiscal adjustment.
The institution also complains about economic data that are overshadowed by political news.
“We will have a challenging year internally. There are no details on how the government intends to design the future tax rule, as well as whether a possible tax reform will bring a relevant increase in tax collection. As a result, inflation expectations for various terms began to rise,” the institution said.
“Our challenges of understanding the new fiscal framework and the new economic policies of the government that has just taken office will bring, at the very least, some entropy and volatility to the markets”, says the bank.
Since Sunday’s acts in Brasília, the news and the government’s actions have been directed away from the economic agenda, distracting public opinion from an issue that was leading to discussions in the first weeks of the new government.
With information from Brasil Sem Medo
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