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President Lula Meets Lower House Speaker, BCB Galipolo Speaks

BRAZIL
  • BCB monetary policy director Gabriel Galipolo will speak in two separate events Tuesday. His remarks will be eyed taking into account his nomination from President Lula and his most recent vote for a more dovish 50bp Selic rate cut.
  • Globo reported that a friction between Finance Minister Fernando Haddad and Lower House President Arthur Lira may further delay the final vote of country’s new fiscal framework. Haddad reportedly said that the Lower House is holding too much political power. Most recently, sources say that President Lula will meet Lira today to discuss cabinet reform.
  • According to BCB board member Fernanda Guardado, Brazil is observing a process of disinflation, reflecting the Central Bank’s efforts to keep the prices index close to the target set by the National Monetary Council (CMN). However, the disinflation process in the country is slow and convergence to the 3% target is expected “by the beginning of 2025”, according to the central bank’s director of international affairs and corporate risk management. Guardado highlighted that there are still risks for Brazil in the external scenario. (Valor)

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