Brazilian real slump pressures Lula to take action on spending

Quick Summary:

Ministers aim to ensure compliance with a “fiscal framework”, introduced by the Lula administration last year, which limits spending growth to 2.5 per cent.

The government’s decision to accelerate the announcement is viewed in part as a reaction to a sharp fall in the real, which has been under strain as fund managers fret over the management of the public finances of Latin America’s largest economy.

Yet investor calls for spending restraint have mounted as inflation runs close to the official target’s cap of 4.5 per cent, leading the central bank to raise interest rates.

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Article Details

Author / Journalist: Joseph Cotterill

Category: MarketsFinanceInvesting

Markets: United StatesBrazil

Topics: Bank Brazil’s Government Fiscal Lula Cent Dollar Been Brazilian Real Markets

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-11-06 @ 17:01:50 (14 hours ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 950 words

Reading Time: 6 minutes read

Sentences: 16 lines

Sentence Length: 60 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 23450312

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Official Website: ft.com

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News Last Updated: 17 hours ago

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