The Brazilian government is set to unveil a new package of measures next week aimed at tackling record household indebtedness, a key economic challenge for President Lula's administration.
Finance Minister Dario Durigan is proposing initiatives that include allowing FGTS withdrawals for debt payments, debt renegotiations with discounts and reduced rates, and federal guarantees through the Operations Guarantee Fund. These actions build on the 2023 Desenrola program.
While prediction markets currently price a 100% probability of a Selic rate increase in April, analysts see these measures as potentially supportive of a 'NO' outcome, suggesting easing financial pressures may reduce the need for further tightening. The current Selic rate stands at 15%.