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Finance Ministry Considering New Revenue Measures

BRAZIL
  • Estado reports that the Finance Ministry is considering new measures to increase revenues, with the idea that these would be introduced this year to take effect in 2025. In a separate interview with GloboNews, Treasury Secretary Ceron said that the measures will be announced at an opportune moment, adding that the government is creating the conditions for the BCB to ease monetary policy.
  • Brazil swap rates have fallen further today, in contrast to the rise in core rates, with yields down by 9bp or more at the long end of the DI curve. Nonetheless, yields remain sharply higher on the week, following the shift of the 2025 fiscal target, a reaction which Ceron blamed on the deterioration in the external environment that he said exaggerated the move in local assets.

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