BRASILIA (Reuters) – Brazil fell way short of its main fiscal target in 2014, underscoring the daunting uphill battle that President Dilma Rousseff’s new economic team faces to shore up public accounts and prevent a credit rating downgrade.
Brazil posted a public sector primary budget deficit of 32.536 billion reais ($13.76 billion) for last year, equal to 0.63 percent of gross domestic product, the central bank said on Friday. That was the first annual budget gap since the current data series started in 2001.
BRASILIA (Reuters) – Brazil’s central bank cemented expectations of another interest rate hike in March but suggested it could slow the pace of increases going forward, according to the minutes of its last monetary policy meeting released on Thursday.
The bank said it has not yet made sufficient progress in curbing price increases but noted inflation now looks more likely to ease towards the 4.5 percent target in 2016 after three consecutive interest rate hikes.