An even tighter monetary policy

Informes Mensuales

 

Volver a

Volver a : 

An even tighter monetary policy

Octubre 2018
There was plenty of news during the last month in both the local and the external fronts. On the one hand, the first election round for president that took place in Brazil last Sunday had a surprisingly overwhelming result: Jair Bolsonaro got 46% of the votes, compared to the 29% Fernando Haddad obtained, who was Lula’s candidate. The second round will be on October 28th, and the chances of Bolsonaro coming ahead are very high, as there are no historical records of a first-round result with such a wide gap between the first and the second candidate being reverted. The market’s reaction has been positive, with the Real appreciating 2%, the 5-year CDS falling from 245 to 229 bps and Brazilian shares increasing over 4%.