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Lower House Vote Scheduled, IPCA Inflation Tomorrow

BRAZIL
  • In local news, market participants will be focused on the Lower House's second round vote on the spending cap bill, scheduled for today.
  • Initially, the proposal of adjustments to the spending rule sparked a significant negative market reaction, however, failing to pass it at this juncture may stoke further uncertainty for markets as the government looks to boost social programs ahead of 2022 election.
  • The domestic data focus will be on tomorrow's IPCA inflation data, where the annual rate is expected to rise to 10.47% for October.
  • Recapping yesterday's news on Bolsonaro ahead of the 2022 election:
    • (Reuters) - Brazil's President Jair Bolsonaro will join the center-right Liberal Party (PL), the party's leader Valdemar Costa Neto said on Monday, aligning forces ahead of the president's re-election bid next year.
    • Bolsonaro confirmed his intention, telling supporters "it might happen as soon as this week."

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