Brazil stocks, currency up on renewed fiscal optimism

Brazil stocks, currency up on renewed fiscal optimism

Chamber Articles Category: Economic News Post Date: 09/06/17 Source: Reuters By: Bruno Federowski
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Brazil's stocks and currency rallied on Wednesday after Congress cleared two key fiscal bills, adding to investor optimism over President Michel Temer's ability to pass market-friendly reforms.

Lawmakers late on Tuesday approved softened budget targets for 2017 and 2018, as well as a bill setting a market-based benchmark rate for state development bank BNDES that will
greatly curb subsidies in years to come.

The measures are central to Temer's efforts to limit growth of public debt without implementing further tax hikes. Investors hope that will boost long-term growth in Brazil as the economy
emerges from the deepest recession in a century.

Hopes of increased lawmaker support for his platform had already grown earlier this week after the country's top prosecutor threatened to partially revoke a plea deal that had supported corruption charges against the center-right president. Read Full Article