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Brazil's central bank sees fiscal risks from fiscal framework review and government stimulus

BY Reuters | ECONOMIC | 02/07/23 06:19 AM EST

BRASILIA, Feb 7 (Reuters) - Brazil's central bank stressed the existence of two fiscal risks that may push inflation upwards, one linked to the review of the country's fiscal framework and the other to fiscal stimuli granted by the government.

In the minutes of the meeting held between Jan 31-Feb 1, when the rate-setting committee known as Copom kept the benchmark rate at 13.75%, some members of the committee noted that the government's fiscal package already presented by the Finance Ministry should mitigate the fiscal risk, but "it will be important to monitor the challenges for its implementation". (Reporting by Marcela Ayres; Editing by Steven Grattan)

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