Campos Neto warns that it is difficult to think about working with lower interest rates, without having a perspective of debt convergence. Check it out. (Image: REUTERS/Brendan McDermid)
Roberto Campos Neto gave the message: if the Brazil want to have fees lows, the government will need to make some shock movement fiscal positive.
During the event “Brazil's economic scenario and developments for 2025”, promoted last night by Veedha Investimento and Aurum, the president of Banco Central spoke about the transparency of fiscal numbers and the need for an effort on Brasília's part.
“There is a recent topic which is the transparency of the tax number. Many people question whether the numbers are transparent, especially when it comes to calculating the primary. We have been saying that it is very important that the primary expresses a fiscal effort in the current year”, he said.
According to Campos Neto, it is “difficult” to think about working with lower interest rates, in a stable manner, without having a prospect of debt convergence. Furthermore, he highlighted that an artificial drop in interest rates would lead to a correction for inflation.
It is worth remembering that in its last meeting, the Monetary Policy Committee (Copom) raised the Selic to the level of 10.75% per year, after maintaining the basic interest rate at 10.50% for four months.
When asked what he will do after leaving the command of the monetary authority from 2025 onwards, Campos Neto limited himself to saying that he would like to return to working in the private sector and that he does not intend to run for any public position.
Today, more speeches from the BC president are expected. He will participate in a lecture, via videoconference, at the “Webinar with Markus Brunnermeier” event, promoted by Princeton University in the early afternoon. And, at 6pm, he will be at the “Digital Assets Conference Brazil 2024” event, promoted by Mercado Bitcoin and BlackRock.
In the last trading session, the Ibovespa (IBOV) extended the highs, reaching 134 thousand points throughout the day. The increase occurs after the increase in Brazil's risk classification by Moody's Agency. The index closed up 0.77%, at 133,514.94 points.
What to expect from Wall Street
On the international side, tension in the Middle East continues to put pressure on oil prices oilwhich rises around 2% this morning. Today, Israel launched new bombings against Beirut, capital of Lebanon — according to the country, attacks were being carried out against specific Hezbollah structures.
Of the economic indicators, the expectation is in relation to the Payroll which will be released on Friday (4). Meanwhile, the USA publicize the ISM e PMI of services. In addition, the North American country will also present the annual number of layoffs and unemployment benefit requests.
According to forecasts from the BTG Pactualthe services ISM should continue in expansionary territory, remaining the main growth vector for the US economy.
For employment data, most members of the Federal Reserve (10 of 19) projected an unemployment rate of 4.4% or higher next year.
It is worth highlighting that the last lines of Jerome Powell and other Fed representatives, signal that the unemployment level is 'very close to maximum employment'.
International stock exchanges and Wall Street futures operate mostly in the negative. It is worth remembering that it is a public holiday in China and the local market did not have a trading session.
Morning Times: Check out the markets this Thursday morning (03)
Asian bags
- Tokyo/Nikkei: +1.97%
- Hong Kong/Hang Seng: -1,47%
- China/Shanghai: Closed
European stock exchanges (open market)
- Londres/FTSE100: +0,26%
- Frankfurt/DAX: -0,51%
- Paris/CAC 40: -0,81%
Wall Street (futures market)
- Nasdaq: -0,45%
- S&P 500: -0,32%
- Dow Jones: -0,33%
Commodities
- Oil/Brent: +1.99%, at US$75.38 per barrel
- Oil/WTI: +2.23%, at US$71.64 per barrel
- Iron ore: -0.09%, at US$108.85 per ton in Singapore; Dalian market is closed
Cryptocurrencies
- Bitcoin (BTC): -0,67%, a US$ 60.774
- Ethereum (ETH): -4,05%, a US$ 2.353
Happy Thursday and keep an eye on Money Times for market news!
*With information from Reuters