Economic meeting in Alvorada ends without defined fiscal direction

Fiscal uncertainty once again took center stage in Brasília this Thursday, 5th, after a meeting called at Palácio da Alvorada. According to Gazeta do Povo, the economic summit was called after strong pressure from the market, but the meeting ended without the announcement of new fiscal measures, with evaluation of proposals scheduled only after Lula's return from COP31.

According to Revista Oeste, ministers Dario Durigan and Bruno Moretti participated in the meeting. On the agenda were sensitive topics for the real and financial economy, such as the discussion about high interest rates and the impact of fuel on the cost of living, as reported by Revista Oeste.

Despite demands for clearer directions in spending policy, the government signaled caution. As Revista Oeste reported, Dario Durigan stated that "public accounts depend on continuous work and achievement of goals, and not on miraculous solutions."

Also according to Revista Oeste, there was a consensus among those present that it is necessary to tighten budget limits and increase the primary balance each year. However, ministers Durigan and Moretti will consult different sectors before proposing measures to Lula, and there is no deadline set for announcing proposals, according to the same publication.

What changes for the investor

The absence of concrete definitions and deadlines for fiscal adjustment prolongs the environment of uncertainty in interest rate curves and the pricing of risky assets. For those who operate on the stock market, Nasdaq, interest rates and the dollar, the lack of a robust signal of spending control and the dependence on future sectoral consultations keep caution high regarding the situation of public accounts.

Automatically translated from Portuguese.