Countries › Brazil › Guide › 2. Macro and country context

2. Macro and country context: Brazil

Macro and country context for investors in Brazil: the legal rules that set interest rates, the inflation target, the federal budget and the floating real, with the latest official figures from the Central Bank and IBGE.

Investor view. An autonomous central bank, a continuous inflation target and a spending rule give Brazil a credible macro anchor; as fiscal discipline holds and rates normalize, Latin America's largest economy rewards patient, well hedged capital.

Brazil macro at a glance: the rules behind rates, inflation, the budget and the realBrazil runs an inflation targeting regime with a legally autonomous central bank, a fiscal rule that caps real spending growth, and a floating, freely convertible FX market. The target is 3 percent IP