June 28th, 2024


1. Central Bank revises its GDP growth projection from 1.9% to 2.3% in 2024

On Thursday (June 27), the Central Bank’s Inflation Report reflected a change in the Bank’s projection for the Brazilian GDP growth in 2024 from 1.9% to 2.3%.

According to the bank, the revision is due to “positive surprises in the first quarter,” such as tax revenue, household consumption, and current investments. The projection also considers that the efforts to help Rio Grande do Sul positively contributed to GDP growth in the second half of the year.

Growth projections for the services and manufacturing sectors were also revised upwards: in manufacturing, the projection was raised from 2.2% to 2.7%, while in the services sector, it increased from 2.0% to 2.4%.

O Globo: BC revisa projeção do crescimento do PIB para 2,3% em 2024
Poder 360: BC sobe para 2,3% a projeção de crescimento do PIB em 2024

2. Central Bank wants firm and vigilant efforts to contain inflation and does not rule out interest rate adjustments

On Tuesday, the Central Bank’s Monetary Policy Committee (Copom) stated that controlling inflation, which is on the rise, requires “firm action” from the monetary authority. The Committee also said it will remain “vigilant” and that “possible future adjustments” in the interest rate “will be dictated by the firm commitment to guiding inflation towards the target.”

This information is included in the minutes of the last Copom meeting, which took place last week. At that time, the board and Central Bank president Roberto Campos Neto voted unanimously to stop cutting the basic interest rate, which has regularly been reduced since August of last year. The Selic rate was maintained at 10.50% per year.

G1: Ata do Copom: BC defende atuação ‘firme’ e ‘vigilante’ para conter a inflação e não afasta ‘eventuais ajustes futuros’ na taxa de juros
Terra: Ata do Copom: BC fala em eventuais ajustes futuros da Selic e atuação firme para conter a inflação

3. Seven out of ten bank transactions in Brazil are done on cellphones

On Wednesday, the Brazilian Federation of Banks (FEBRABAN) released a study showing that seven out of ten banking transactions in the country are performed on cellphones. In 2023, there were 130.6 billion operations carried out through mobile devices, a 22% increase compared to the previous year.

The Banking Technology Survey, conducted by consulting company Deloitte, also revealed that the share of digital channels in the total number of banking transactions grew from 76% in 2022 to 79% last year. This means that eight out of ten transactions are done online.

O Globo: Sete em dez operações bancárias no Brasil são feitas pelo celular, indica Febraban
CNN: 7 em cada 10 transações bancárias são feitas pelo celular, aponta Febraban

4. BNDES approves R$5.3 billion in credit lines for innovation and an additional R$2.5 billion for the 2024 budget

At the request of the Brazilian Development Bank (BNDES), the federal government approved an increase of R$2.5 billion for a new credit line for innovation, bringing it to R$8.4 billion this year. Launched in September last year, the BNDES Mais Inovação credit line is the return of subsidized loans for large companies, albeit on a smaller scale.

According to BNDES, the new credit line has already approved R$5.3 billion in 270 transactions based on data updated until the end of May. By the end of 2023, R$3.5 billion had been approved for 24 investments. This year, R$1.8 billion has been approved in 246 transactions.

O Globo: BNDES já aprovou R$ 5,3 bi em linha para inovação e consegue mais R$ 2,5 bi para completar orçamento de 2023
Exame: BNDES aprovou R$ 5,3 bi em linha para inovação e conseguiu mais R$ 2,5 bi

5. IDB issues first bonds in reais to finance projects in the Amazon

On Thursday, IDB Invest, the private sector branch of the Inter-American Development Bank Group, announced the launch of its first bond in reais to finance green and social initiatives in the Amazon region. This is a test run for the creation of the so-called “Amazon bonds” in the second half of the year. The bonds will be debt securities used exclusively to finance sustainable projects in the Amazon region.

The IDB said the issuance will create economic opportunities for the private sector associated with the forest. The fundraising round amounted to R$50 million in bonds with a five-year term. The funds raised will be directed towards projects aligned with Amazon Forever, the IDB’s umbrella program for sustainable financing and development in the Amazon region.

Folha: BID faz primeira emissão em reais para financiar projetos na Amazônia
Capital Reset: BID Invest emite R$ 50 mi em bonds para negócios na Amazônia