Brazil Finance Ministry Says Fuel-Price Measures Keep Selic Cuts on Course

Overview

• In her first interview as economic policy secretary, Débora Freire said the anti-war package will help hold down inflation and allow the rate-cut cycle to continue.
• She said the oil spike is a supply shock, so high interest rates work poorly against it.
• The ministry does not see a need for new measures now, calling March food price gains seasonal.
• The Central Bank, which sets the Selic benchmark, will decide on cuts, though the ministry seeks room to ease if fuel costs stabilize.
• The ministry is also studying ways to swap costly household and small-business debts for cheaper loans with guarantees, with curbs on using credit for online betting.