Policy reversal: Lula speaks at a conference in Brasilia. The market backlash came as soon as the government detailed plans to increase a tax known locally as IOF on a series of financial transactions. — AFP
BRASILIA: An unmistakable sense of deja vu hit Brazil last week when an announcement of measures meant to shore up the nation’s budget sparked a market sell-off instead.
For the second time in six months, a plan designed to assuage investor concerns about President Luiz Inacio Lula da Silva’s fiscal and economic policies prompted questions about his commitment to austerity.
