Supreme Court Uphold BCB Autonomy in 8-2 Vote

LOCAL NEWS

• Brazil Supreme court upholds central bank autonomy in 8-2 vote, guaranteeing policymakers freer rein to tackle rising inflation pressures after leftist parties sought to strike down the measure.
  • Analysts notes the victory should boost policy credibility under Bolsonaro with the law not changing how the bank sets interest rates, but distances it from politics by setting fixed four-year terms for its governor and directors that will no longer coincide with the presidential election cycle
• House Speaker Lira says he will only try vote on income tax reform after talking with political parties, despite having recognised that the issue will never have convergence an unanimity.
  • Lira said a Governor meeting will be scheduled for next week with the court-ordered precatorios payments still being negotiated
• Guedes says he pushed for a longer, smaller power hike against calls for a higher, shorter hike as a means of replenishing water reservoirs (10-15% full).
  • Bolsonaro warned some hydroelectric plants would cease to function if the crisis gets any worse – calling on people to save energy at home.
• Bolsonaro says the 7 September nationwide marches by his supporters will not be violent.
  • Comes amid concerns that bolsonaro supporters riled by frustrations with the Supreme Court, federal election authorities and lawmakers, could strike out during the marches