The debt stock reached 5.702 trillion reais ($1.08 trillion) in May after it had increased 0.45% in April over the previous month. April data had not yet been published due to a protest for higher salaries by Treasury employees.
According to the Treasury, the average interest rate on the domestic federal debt grew to 11.69% against 11.29% in April, its highest level since May 2017, amid appreciation in inflation-linked and interest rate bonds.
The Brazilian central bank has already raised its key interest rate to 13.25% from a record low of 2% in March last year, indicating there is room for another hike in its battle to tame double-digit inflation in Latin America’s largest economy.
($1 = 5.2557 reais)
Source: Economy - investing.com
