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[BUSINESS] · Brazil · 35 sources

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Brazil public debt rises to R$ 9.28 trillion amid high interest rates FAST-MOVING

Brazil's Federal Public Debt (DPF) rose 0.22% in July to R$ 9.288 trillion, driven by R$ 89.95 billion in interest appropriations. The Tesouro Nacional has revised its Annual Financing Plan (PAF), projecting that Selic-linked bonds will comprise 49% to 53% of the total debt by the end of 2026, up from previous estimates of 46% to 50%. The total DPF is expected to reach between R$ 9.7 trillion and R$ 10.3 trillion by late 2026.

In terms of revenue, the Receita Federal reported a record federal tax collection of R$ 289.3 billion in July, a real increase of 8.97% year-over-year. This growth was supported by social security contributions, corporate income tax, and extraordinary revenues from petroleum export taxes, which contributed approximately R$ 3.1 billion in July. However, tax collection on dividends remains below expectations, totaling R$ 3.145 billion from January to July, only 18.3% of the revised annual forecast.

Regarding monetary policy, XP Investimentos has lowered its 2026 Selic terminal rate projection from 14% to 13.25%, citing slowing economic activity and disinflation. The firm anticipates further 0.25 percentage point cuts in September and November.

Entities

Banco Central · Banco Central do Brasil · Brazil · Claudemir Malaquias · Marcelo Gomide · Receita Federal · Receita Federal do Brasil · Tesouro Nacional · XP Investimentos

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