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Fuel Tax Could Be Decided As Soon As Today

BRAZIL
  • Bloomberg cites the Brazilian finance minister as stating that the government are to decide on a gasoline tax today, however the new BCB director will not be decided this week.
  • President Lula is in discussions with Petrobras as we speak. Seems Lula's economic team won over, who'd seen the case for reinstating the fuel tax as a means to prop up fiscal revenue, although other cabinet members had flagged the risks to inflation. The energy ministry are to debate the issue today.
  • Monetary policy director Serra’s terms ends on Tuesday. Folha de S. Paulo had reported that former BCB directors Pereira da Silva and Volpon are among Lula’s options for consideration. Folha wrote over the weekend that more market-friendly nominations are facing resistance within Lula’s PT party.

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