Brazil's Haddad Says Fiscal Framework More Important Than Any Inflation Discussion

Brazil's Finance Minister Fernando Haddad said on Monday that getting a new fiscal framework right would have a much more important impact on the economy than the discussion about inflation targets, Reuters reported. Haddad said he intended to present the framework to President Luiz Inacio Lula da Silva this week. "If we get the fiscal framework right, this has a much more important impact (than the discussion of inflation targets)," he said, when asked about possible changes to inflation targets. He also said Brazil had room to cut interest rates that the rest of the world did not, in the light of recent government measures. "If we harmonize fiscal and monetary policy, we can anchor and navigate rough international seas," he said, after acknowledging challenges after the banking crisis in the U.S. threatened by the collapses of Silicon Valley Bank and Signature Bank. Haddad said he has been talking to Brazilian central bank governor Roberto Campos Neto about the topic and that it was still not clear whether the bank would have to take any action due to the effects of the episode on emerging economies. Read more.