Citibank analysts warn of prolonged uncertainty in Brazil: “With the Temer recording being seen as inconclusive and Temer expressing his willingness to fight on, there won’t be a quick resolution. The market may therefore give up on pension reform before the 2018 election. This creates rising risks with respect to the fiscal dynamics and requires a higher risk premium at the back end of the curve and in the currency. “
Citibank: Brazil risk to rise as Temer prolongs political crisis
The market will likely give up on pension reform by next year, with no end in sight to presidential scandal
