Halister News

(Bloomberg) -- While Acting President Temer has outlined a “robust economic strategy”, the markets must be patient as reforms approval in Congress are a “complex process” and might take time, Carlos Kawall, economist a Banco Safra and former Treasury secretary, says in a phone interview.

• “It is not possible to solve problems that depend on the political scenario in three days or three weeks”
  • Positive aspect is that Brazil looks like it will show bigger consensus about needs of fiscal reforms compared with previous years
  • Finmin Meirelles’s team announced yday signals commitment to reforms; nomination of Marcelo Caetano as secretary, known as a specialist on social security accounts, shows that overhauling Brazil’s costly pension regime is a priority, Kawall says
• Govt should move slowly, but with consistency, as the problems are complex; “I agree with Meirelles when he says that we need to go slow because we are in a hurry”, Kawall says
• Safra’s economist forecasts that new BCB president Ilan Goldfajn may start cutting Selic rate in Aug. 31 meeting; Selic may close 2016 at 12.75%, from current 14.25%, and 2017 at 10%, with CPI reaching 4.5% target