A confidential meeting in São Paulo between Finance Minister Fernando Haddad and top bank executives leaked, causing market volatility. Haddad proposed solutions for government spending strategies, leading to stock price drops and interest rate surges. While no firm commitments were made, the hint of fiscal instability alarmed investors.
Attendees included executives from major banks like Santander, Itaú, and Bradesco. Misinterpretations about potential fiscal changes spread post-leak, worsening market reactions. The Ibovespa index plunged 1.73%, and the dollar reached R$ 5.3247, its highest since January 2023.
Haddad refuted misinformation allegations, confirming no changes to fiscal policies and readiness to cut expenditures if needed. The leak raised concerns about rising mandatory costs in healthcare and education, potentially impacting discretionary spending.
By emphasizing adherence to existing fiscal frameworks and commitment to fiscal discipline, Haddad reassured the financial community. Despite market fears, he remains dedicated to addressing fiscal challenges and promoting clear communication to prevent future misunderstandings.