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Fiscal Uncertainty Remains Heightened, BCB Guillen At JPMorgan Event

BRAZIL
  • Reports yesterday suggest that party leaders in the Senate are against the provisional measure sent by the government that increases payroll taxes on 17 sectors. Senate President Rodrigo Pacheco said that the Senate will decide on the measure in stages and a decision will only be taken after a conversation with the government.
  • Pacheco added that a decision on the proposal must be taken during the parliamentary recess, which ends in February and that he would try to discuss the matter with Finance Minister Haddad throughout this week. According to local media, Pacheco may suggest that the government reduces spending to compensate for tax cuts (Veja).
  • Central bank Director of Economic Policy Diogo Guillen speaks at an event organized by JPMorgan, at 11am local time though it is not clear if the comments will be made public. Data wise, vehicle production and sales figures for December will be published at 1300GMT (0800ET) today. However, the main focus will be on both domestic IPCA inflation and US figures scheduled on Thursday.

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