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Weekly Report - 14 November 2024 (WR-24-45)

BRAZIL: Rising concern over inflation and interest rates

The government led by President Luiz Inácio Lula da Silva has come under pressure due to rising inflation, which some experts forecast will breach the upper limit of the annual inflation target range set by the central bank (BCB). In response to the continued increase in prices, the BCB has accelerated its cycle of interest rate hikes, citing doubts over the Lula administration’s fiscal discipline as one factor influencing its decision for a tighter monetary policy.

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