Brazil Eases 2025 Budget Target, Putting Fiscal Credibility and Currency at Risk

• Brazil will target a balanced primary budget for 2025 rather than a 0.5% surplus as previously indicated • The move puts pressure on Brazil's currency and its credibility on fiscal discipline • Tax revenue is slowing even as January collections hit a record high • Congress elections in 2023 could complicate efforts to adjust fiscal targets • Finance minister says Lula will pick "a good name" to replace central bank chief Campos Neto