The director of international affairs and corporate risk management of the Central Bank, Paulo Picchettisaid on Thursday, 24, that the latest market readings point to some belief about the fall of public spending within the tax frame.
However, he noted that the agents do not expect the government to be able to deliver a fiscal consolidation in the near future, given that expectations do not indicate much credibility about the fiscal goals.
“When you look at expectations for nominal results, it deteriorates a lot. In December, there was a break in expectations (…) and this has contaminated expectations about the coming years,” the director told Itaú event in Washington, United States.
“There is no expectation for the fiscal consolidation market in the near future,” he added, showing that expectations for public debt have deteriorated over time.
