Brazil: New austerity measures announced – Swissquote

FXStreet (Delhi) – Yann Quelenn, Market Analyst at Swissquote, note that the Brazilian government has imposed strict austerity measures which involve plans to cut spending in 2016, in addition to raising taxes.

Key Quotes

“In the wake of Brazil’s credit downgrade to junk, Joachim Levy has proposed a new round of austerity measures aimed at cutting expenses and raising taxes.”

“Dilma Rousseff’s government hopes to trim BRL 26bn of expenses in 2016 while increasing tax revenue by BRL 28bn. As a result, the BRL appreciated 1.61% against the EUR and 1.45% against the USD.”

“This downgrade by S&P is a blessing for Joachim Levy as it will help to convince lawmakers and will sweeten the pill of austerity for Brazilian people.”