INSUBCONTINENT EXCLUSIVE:
mortgage rates to business loans
expectations rise, the cost of everything goes up
The Central Bank then typically raises interest rates to fight these price increases
(Photo Internet reproduction)The government is trying to fix this
Finance Minister Haddad promises a new plan to cut spending by R$70 billion ($12.28 billion) over two years
put it bluntly: only genuine spending cuts will restore market confidence
Short-term investment rates (DI contracts) are now at their highest since December 2022
The January 2026 rate jumped to 13.30%, while the 2027 rate hit 13.46%.Adding to these concerns, the Brazilian real is expected to weaken
Markets now predict it will trade at R$5.60 per dollar in 2024, making imports more expensive and potentially pushing inflation even
These changes affect real people: higher rates mean more expensive mortgages, and pricier car loans, and businesses think twice before
The next few days are crucial
rates, suggesting tough economic times ahead for Brazilian consumers and businesses.
