Executive charges lower interest rates while pushing fiscal adjustment forward

The economic team once again criticized the current level of interest rates in the country, even opting to postpone the debate on the balance of public accounts. According to Diário do Poder, executive secretary Dario Durigan stated that the Selic rate at 13.75% per year is considered very bad for the national economy.

The declaration occurs in the same period in which the Central Bank kept the basic interest rate unchanged at 13.75% per year, in a unanimous decision by the Copom dated November 4, 2026. As determined by Diário do Poder, inflation measured by the IPCA accumulated over twelve months reached 4.58% in September.

Despite criticism of the cost of credit, the government ruled out announcing new fiscal adjustment measures in the coming days, as reported by Diário do Poder. The news indicates that the federal administration is betting on cutting privileges to try to close public accounts in the black.

While the fiscal adjustment is delayed after COP31, an event to which President Lula travels this week, the financial market monitors developments in economic policy. According to the Diário do Poder, the postponement of fiscal actions keeps the focus of economic agents on the trajectory of State spending.

What changes for the investor

The divergence between the discourse of low interest rates and the delay in implementing a consistent fiscal adjustment directly impacts the formation of expectations in the fixed income and foreign exchange markets. Investors who operate the stock exchange, the Nasdaq, interest rates and the dollar begin to reassess the Brazilian fiscal risk, considering how the absence of new expense containment measures and the maintenance of the Selic at 13.75% influence the pricing of assets and business volatility.

Automatically translated from Portuguese.