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Supreme Court Authorises Payment Of Precatorios, BCB Governor Speaks

BRAZIL
  • The Supreme Court authorised the government to use extraordinary credit lines to pay 95 billion reais of so-called “precatorios”, which are obligations it has after losing other court battles against private parties; even though amount is substantial, the news is broadly in line with expectations.
  • Brazil central bank director Guillen has been speaking this morning, stating that both CPI and core CPI are falling, and the bank sees a big reduction in inflation expectations for 2023 but more stable forecasts for year-end 2024 and beyond that remain above the target.
  • BCB President Roberto Campos Neto is scheduled to speak at 0930ET and will be watched for any hint that corroborates the recent downward swing in the belly of the DI swaps curve.

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