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Brazil's spending freeze is step in the right direction -Fitch

BRASILIA Thu Feb 20, 2014 11:16pm IST
http://in.reuters.com/article/2014/02/20/brazil-economy-fiscal-fitch-idINE5N0JS00Q20140220

Feb 20 (Reuters) - Brazil's budget freeze is a step in the right direction and highlights the fact that the government is seeking to better anchor expectations on fiscal policy, a senior analyst with Fitch Ratings said on Thursday.

"That said, we have to monitor the actual implementation and fiscal performance in 2014 to judge how effective the spending freezes turn out to be, especially in the context of continued downside risks to growth projections," said Shelly Shetty, head of Fitch Ratings Latin America sovereigns, in a note.

Brazil said it would freeze 44 billion reais ($18.44 billion) in budgeted public spending this year in a bid to recover investors' credibility.