Small font size A Larger text size A Largest text size A

Brazil finance mister says rate cuts will help improve debt path

BY Reuters | ECONOMIC | 01/29/26 07:22 AM EST

BRASILIA, Jan 29 (Reuters) - Brazil's Finance Minister Fernando Haddad said on Thursday that the ?central bank's announcement that it ?will begin cutting ?interest rates at ?its next ?meeting in March will help ?put the ?country's public debt on a better trajectory.

Speaking ?in ?an ?interview with news outlet Metropoles, Haddad said the recent ?increase in public debt had nothing to do with the government's primary deficit.

The ?cost ?of servicing Brazil's debt is closely ?tied to the benchmark interest rate Selic, which is why financing costs rise when the key ?rate goes up, the minister said. (Reporting by Marcela Ayres; ?editing by Gabriel Araujo)

More Fixed Income News

India budget seeks manufacturing pivot, but falls short of expectations BY Reuters |ECONOMIC 02:02 AM EST
Trump says Fed nominee Warsh could garner Democratic support BY Reuters |ECONOMIC 01/31/26 10:45 PM EST
Trump says his Fed nominee Warsh could pick up support from Democrats BY Reuters |ECONOMIC 01/31/26 09:26 PM EST
Bitcoin falls below $80,000, continuing decline as liquidity worries mount BY Reuters |ECONOMIC 01/31/26 04:35 PM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article