NEW
โ ViewAdvancedMacroeconomics โบ Inflation & Interest Rates
Brazil Selic Policy Anchorage and Fiscal Rule Constraints: Transmission Channels
Banco Central do Brasil held its Selic rate at 13.75 percent as unanchored inflation expectations and fiscal framework expansion pressure domestic debt markets. High benchmark rates elevate sovereign debt service costs and widen local corporate credit spreads. This analysis details the transmission channels linking fiscal expenditure limits, sovereign yield curve slopes, and private credit availability.
5mยท๐ 0
โ ViewAdvancedInternational Economics โบ Emerging Markets
Brazil Services PMI Returns to Expansion at 51.0 as High Selic Rate Drives Foreign Capital Inflows
Brazil's services sector expanded in August with the S&P Global Services PMI rising to 51.0, snapping a brief contraction. Supported by a benchmark Selic rate near 14% and a stronger currency, the nation's resilient service economy highlights how Latin America's largest market is navigating restrictive credit conditions.
2mยท๐ 0