Politics

Experts say the law protects the Central Bank from political pressure – Economy

Published

3 years ago

September 29, 2021

Experts say the law protects the Central Bank from political pressure - Economy

Signaling that the cycle of raising the base interest rate (Selic, currently at 6.25% per annum versus 2.0% in force until March) could end at a higher level than originally anticipated, as suggested at By September meeting of the Committee on Monetary Policy (Copom) The Central Bank (BC) may face political pressure. This is because in order to raise the base rate to a higher level, BC will be able to enter an election year with a full tightening of monetary policy. The situation may indicate the autonomy of the monetary authority signed in February. Economists have heard

State

However, we will bet that BC is protected.

According to Jos Jlio Senna, former director of British Columbia and head of the Center for Monetary Research at the Brazilian Institute of Economics, the Getlio Vargas Foundation (Ibre / FGV), the formal autonomy established by law serves to “protect” the council of monetary authorities. Without this, market agents have always doubted whether the director could be fired if he resisted political pressure. “If it weren’t for autonomy (by law), the pressure on BC might have become difficult to resist,” Senna said.

According to Srgio Vale, chief economist at the consulting firm MB Associados, protection will be needed because political pressure will arise. This is because, he said, it is “highly likely” that President Jair Bolsonaro will continue to “highlight” the economic outlook with his statements. “The noise is inevitable. This government is made of noise. It will be difficult not to achieve BC and monetary policy, but there is a certain degree of protection, both from the law itself and from the Minister (Economy, Paulo) Guedes, who can serve as a shield.” – he declared.

Silvio Campos Neto, senior economist at Tendencias Consultoria, does not see the rise in interest rates as an election-related issue. He believes the bull cycle will end in 2022 and that fiscal rules are now more relevant to political debate. “In Brazil, when elections are close, it’s normal for British Columbia to stay out of the way and ultimately not make significant changes to monetary policy,” he said.

Information from the newspaper

State of Sao Paulo.

Goodwin Townsend

General internet buff. Hardcore music maven. Typical foodaholic. Friendly student.

Politics

The dollar continues to reflect the political scenario

Published

2 years ago

December 20, 2022

Goodwin Townsend

The dollar continues to reflect the political scenario

Yesterday, financial agents evaluated the opposite decision of the Federal Supreme Court (STF) regarding the so-called secret budget. In addition, a decision was made by STF Minister Gilmar Méndez to issue an injunction that would exclude the Bolsa Família from the spending cap rule, with investors trying to understand how this measure would affect the processing of the transitional PEC in the Chamber of Deputies. Oh this PEC!!!!

Since he is an exchange investor, any reading that the budget will be exceeded or become more flexible will negatively affect the exchange market, whether through the PEC or in any other way. We will continue with volatility today.

Looking beyond, the US Central Bank (Fed), although slowing down the pace of monetary tightening at its December meeting, issued a tougher-than-expected statement warning that its fight against inflation was not yet over, raising fears that rising US interest rates will push the world’s largest economy into recession.

The currency market continues to react to political news. The voting on the PEC is saved for today. It is expected that it will indeed be reviewed to open the way tomorrow for discussions on the 2023 budget.

Yesterday, the spot price closed the selling day at R$5.3103.

For today on the calendar we will have an index of consumer confidence in the eurozone. Good luck and good luck in business!!

Goodwin Townsend

General internet buff. Hardcore music maven. Typical foodaholic. Friendly student.

Politics

Andrés Sánchez consults with the Ministry of Sports, but refuses a political post.

Published

2 years ago

December 20, 2022

Goodwin Townsend

The former president of the Corinthians dreams of working for the CBF as a national team coordinator. He was consulted shortly after Lula’s election.

Former Corinthians president Andrés Sánchez was advised to take a position in the Ministry of Sports under the administration of Lula (PT). However, he ruled out a return to politics. dreams of taking over the coordination of CBF selectionHow do you know PURPOSE.

No formal invitation was made to the former Corinthian representative, only a consultation on a portfolio opportunity with the new federal government, which will be sworn in on January 1, 2023.

Andrés was the Federal MP for São Paulo from 2015 to 2019. At that time he was elected by the Workers’ Party. However, the football manager begs to stay in the sport, ruling out the possibility of getting involved in politics again.

Andrés Sanchez’s desire is to fill the position of CBF tackle coordinator, which should become vacant after the 2022 World Cup. Juninho Paulista fulfills this function in Brazil’s top football institution.

The former president of Corinthians was in Qatar to follow the World Cup along with other figures in Brazilian football. During his time in the country, he strengthened his ties with the top leadership of the CBF.

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Goodwin Townsend

General internet buff. Hardcore music maven. Typical foodaholic. Friendly student.

Politics

The EU has reached a political agreement on limiting gas prices – 19.12.2022

Published

2 years ago

December 19, 2022

Goodwin Townsend

Germany sentenced Russian to life imprisonment for political murder by order of Moscow - 12/15/2021

BRUSSELS, DECEMBER 19 (ANSA). European Union countries reached a political agreement on Monday (19) to impose a natural gas price ceiling of 180 euros per megawatt hour (MWh). The main sources of income for Russia and the minimization of the use of energy as a weapon by the regime of Vladimir Putin.

The agreement was approved by a supermajority at a ministerial meeting of member states in Brussels, Belgium, after months of discussions about the best way to contain the rise in natural gas prices in the bloc caused by Russia’s invasion of Ukraine. .

The value set by the countries is well below the proposal made by the European Commission, the EU’s executive body, in November: 275 EUR/MWh. However, the countries leading the cap campaign were in favor of an even lower limit, around 100 EUR/MWh.

Germany, always wary of price controls, voted in favor of 180 euros, while Austria and the Netherlands, also skeptical of the cap, abstained. Hungary, the most pro-Russian country in the EU, voted against.

The instrument will enter into force on 15 February, but only if natural gas prices on the Amsterdam Stock Exchange exceed 180 euros/MWh for three consecutive days. In addition, the difference compared to a number of global benchmarks should be more than 35 euros.

Italy, the EU’s biggest supporter of the ceiling, has claimed responsibility for the measure. “This is a victory for Italy, which believed and worked for us to reach this agreement,” Environment and Energy Minister Gilberto Picetto tweeted.

“This is a victory for Italian and European citizens who demand energy security,” he added.

Currently, the gas price in Amsterdam is around 110 EUR/MWh, which is already a reflection of the agreement in Brussels – in August the figure even broke the barrier of 340 EUR/MWh.

However, Russia has already threatened to stop exports to countries that adhere to the ceiling. (ANSA).

See more news, photos and videos at www.ansabrasil.com.br.

Goodwin Townsend

General internet buff. Hardcore music maven. Typical foodaholic. Friendly student.