Brazil’s Temer boxed in by recession, political crisis: analysts

Brazil’s President Michel Temer is increasingly likely to depend on lower interest rates and an unpopular agenda of legislative reforms to revive a moribund economy, analysts said, as a deep recession risks entering a third year.

Temer’s best chances to spark growth lie in quickly pushing through Congress an unpopular pension reform unveiled this month. If his program wins approval, that would help the central bank cut interest rates at a faster pace, according to analysts.

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