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Higher interest rates and power rates
Higher interest rates and power rates
Brazilian inflation forecast for 2021, especially for the first half, is on the rise.
Economists expect that the Central Bank will raise interest rates.
In this scenario, the amortization cost of investments, particularly capital-intensive ones, as is the case of the electricity sector, will suffer a significant increase.
In real life, regulated rates and in the same line, deregulated prices, will be directly impacted.
What will Brazil do? Will "force" the situation and keep rates as if nothing had happened or will recognize the new situation? Will populism or market realism prevail?
We are well aware of the results of the two alternatives. Which one will be chosen?
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