Brazil Copom Minutes Warn Fiscal Weakening Could Raise Neutral Rate

The Brazilian Central Bank's Copom minutes reaffirm that weakening fiscal discipline and structural reforms, along with rising directed credit, could push the neutral interest rate higher. This signals a hawkish bias amid fiscal uncertainty, potentially supporting higher long-term yields and a stronger BRL. The statement is consistent with prior guidance, but the explicit link to neutral rate underscores persistent fiscal risk.