Sources: Brazil’s Bolsonaro vexed by central bank autonomy

By DÉBORA ÁLVARES and DAVID BILLER
Associated Press

BRASILIA, Brazil (AP) — Brazilian government officials have told The Associated Press that President Jair Bolsonaro has begun expressing irritation at the central bank’s newfound autonomy as surging inflation presents a threat to his 2022 reelection prospects. Central bank autonomy is among few significant economic reforms that Bolsonaro’s administration has managed to secure. Others have faced headwinds at the same as the government signals it may boost spending next year despite limited fiscal space. That has prompted a sell-off due to concerns about Brazil’s fiscal policy outlook, as well as speculation the market could give up hope on the Bolsonaro administration’s ability to deliver further reforms.