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Bolsonaro on the Campaign Trail Pledges No More Congressional Spending

BRAZIL
  • Brazilian President Bolsonaro remains on the campaign trail, reiterating his support for an extension of COVID aid payments. It's expected a new programme would target those who miss out of the benefits provided by the end-October payments, with payments of BRL 300/month the most likely.
  • His tour of the Brazilian regions and cities continues throughout the week, with Bolsonaro looking to bolster support by announcing infrastructure plans and land handovers to poorer families. In contrast, Bolsonaro repeated his pledge not to intervene in high fuel prices or give in to congressional demands to up spending.
  • The IGPM inflation measure came in just below expectations, at -0.64% on a M/M basis vs. Exp. -0.45%, while the Y/Y release dropped to 24.86% vs. Exp. 25.12%.
  • Later today, primary budget balance data is expected to improve to a deficit of 7bln from July's 10bln. Manufacturing PPI data also crosses. Elsewhere, Fitch hold a virtual conference on Brazil later today.
  • BRL traded weaker alongside Brazilian equities Tuesday, but movements in the USD so far suggest both markets could see some relief at the open. Key resistance at August's 5.4741 will likely remain intact for now.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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