[BRASILIA] Brazilian markets rallied on Thursday and stocks hit the highest level on record, as the government's cornerstone pension reform bill cleared a key congressional hurdle.
Mr Guedes welcomed the vote and said overhauling Brazil's social security system could save as much as 3 trillion reais over 20 years. The president's chief of staff, Onyx Lorenzoni, said the lower house vote could be held next week. Speaking at an investor event in Sao Paulo alongside Guedes, central bank President Roberto Campos Neto repeated the bank's view that concrete progress on the reform agenda is crucial to taming inflation, and that the rate outlook depends on economic activity and the balance of risks for inflation.
"We believe that risks of additional dilution of the total fiscal savings in the Senate are very low," Credit Suisse analysts wrote in a note to clients.