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Focus Should Shift To Payroll Tax Proposals This Week

BRAZIL
  • On the data front, there are no releases scheduled for today, although January tax collections will be released at some point in the coming days. Lula will meet with cabinet ministers and congress leaders at 1200GMT and he is scheduled to meet with Finance Minister Haddad at 1900GMT. Going forward, attention should increasingly turn to negotiations between the government and congress over the payroll tax reforms over the course of this week.
  • In other news, the BCB announced that it will meet with economists on a monthly basis, rather than quarterly, to better capture analysts’ sentiment and forecasts for preparation of its Quarterly Inflation Report. The central bank said that this will offer more time for economists to delve deeper into their analyses and projections.
  • Meanwhile, the government recalled its ambassador in Israel for consultations, after Israel said that President Lula was not welcome in the country until he took back his recent remarks about the country’s military campaign in Gaza.
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