LatinNews Daily Report - 16 February 2012

Brazil | Budget cuts. The finance ministry has said it will seek an adjustment of R$55bn (US$32bn) in the 2012 budget so as to ensure that it reaches its primary surplus target of 3.1% of GDP. The adjustment amounts to about 3.3% of the budget. The government led by President Dilma Rousseff insists that social schemes and infrastructure investments will be ring-fenced from the cuts. The Rousseff administration is trying to tighten up fiscal policy so as to allow for monetary easing in the hope of reducing Brazil’s structurally high interest rates, which stymy growth.

End of preview - This article contains approximately 98 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial