Good morning! Today, we talk about the latest messages the Central Bank sent to the government. A rare confession from the VP. And Brazil is positioning itself next to Russia and China at the United Nations.
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Central Bank v. inflation v. Lula
The Central Bank’s Monetary Policy Committee on Tuesday published the minutes of its latest policy meeting. It did not deviate from the hawkish statements it made last Wednesday — when the committee decided to keep interest rates stable at 13.75 percent, adding that it would not hesitate to raise them if inflation does not behave as the bank hopes.
State of play. Annual inflation fell to 5.6 percent in February, but it remains widespread. Over the past two months, only the clothing sector saw prices drop out of all segments surveyed by Brazil’s official statistics agency. What’s more, inflation could stop falling in the near future, especially due to the return of federal fuel taxes this month.
What they are saying. The Central Bank made some gestures toward Finance...