International
Brazil hikes interest rate as inflation surges
AFP
Brazil’s central bank on Wednesday hiked its benchmark interest rate by a whopping 150 basis points for the second straight time, seeking to fight surging inflation even as Latin America’s biggest economy is stuck in recession.
The increase, the seventh straight, was in line with analysts’ expectations. It brought the Selic rate to 9.25 percent, the highest since mid-2017.
The decision was made unanimously by the nine members of the bank’s monetary policy committee, which said in a statement it expected “another adjustment of the same magnitude” when it ends its next meeting, on February 2.
“It is appropriate for the monetary tightening cycle to advance significantly into the territory of a contraction,” it said.
“The committee will persevere in its strategy until not only the process of disinflation but the anchoring of (inflation) expectations in line with its targets are consolidated.”
Policymakers are navigating treacherous waters as they try to right Brazil’s listing pandemic recovery.
The South American giant’s economy is in recession, having contracted by 0.4 percent in the second quarter of 2021 and 0.1 percent in the third.
Despite the slump, the central bank has hawkishly slammed on the monetary policy brakes because of surging inflation, fueled by both global price pressures and Brazil’s own domestic problems.
The annual inflation rate came in at 10.67 percent in October, nearly triple the bank’s target of 3.75 percent.
– Spending amendment –
Rapidly rising prices have been driven by a series of factors: internationally, those include global supply chain shortages, increasing oil prices and pandemic uncertainty.
At home, Brazil faces electricity rate hikes caused by droughts that sapped crucial hydroelectric dams, a weak currency and uncertainty around President Jair Bolsonaro’s bid to amend the constitution to free up money in the government’s tight budget for massive social spending.
Critics accuse the far-right president of embracing economic populism with the new spending measures.
But he won a victory Wednesday when Congress adopted a first portion of the spending amendment, enabling the government to postpone court-ordered debt payments.
That will free up 62 billion reais ($11 billion) to spend in 2022, with most expected to go to welfare payments.
The economy has turned into a major headache for Bolsonaro heading into elections next October that polls currently place him on track to lose to leftist ex-president Luiz Inacio Lula da Silva.
Double-digit inflation has left many Brazilian families struggling to make ends meet, weighing down Bolsonaro’s already sagging popularity — and driving his bid for new social spending, political analysts say.
Brazil’s unemployment rate has meanwhile been stubbornly high, at 12.6 percent for the third quarter.
International
Meta Says Russia Seeks to Ban WhatsApp for Defending Secure Communication
U.S. tech giant Meta, the parent company of WhatsApp, said that Russia is seeking to ban the messaging app because it “challenges government attempts to violate people’s right to secure communication.”
Russian authorities have encouraged citizens to switch to state-backed applications, and in August they already blocked WhatsApp’s calling feature.
On Friday, the communications regulator Roskomnadzor claimed that the platform was being used to “organize and carry out terrorist acts in the country, recruit perpetrators, and facilitate fraud and other crimes.”
“If the messaging service does not comply with Russian law, it will be completely blocked,” the regulator warned.
WhatsApp remains one of Russia’s most widely used messaging services, alongside Telegram.
Moscow is pressuring both platforms to grant authorities access to user data upon request for investigations into fraud and activities the government labels as “terrorist.”
Human rights advocates fear the demand could be used to target critics of the Kremlin, President Vladimir Putin, or the war in Ukraine.
International
Archbishop Wenski criticizes Trump’s deportation policies, calls for stronger push for reform
The Archbishop of Miami, Thomas Wenski, has called for increased pressure on the U.S. Congress to advance comprehensive immigration reform and criticized President Donald Trump’s mass deportation policies, arguing that they “do nothing to help.”
“We need to apply more pressure on Congress so lawmakers can make the necessary changes. It is also important for the Administration to listen to our voice. We do not want to be anyone’s enemy—we are Americans,” Wenski said in an interview with EFE.
The religious leader, who heads one of the dioceses with the largest Latino and Haitian populations in the United States, issued a call to defend the rights of migrants. He also emphasized that the U.S. Conference of Catholic Bishops (USCCB) has maintained a strong and public stance in favor of migrants for decades.
International
Trump relaunches diplomatic push to finalize U.S.-Backed peace plan for Ukraine War
U.S. President Donald Trump announced on Tuesday that his diplomatic team will resume meetings with delegations from Russia and Ukraine in an effort to pressure both sides to accept the peace plan proposed by Washington to end the war in Ukraine.
As part of this new round of talks, U.S. Special Envoy Steve Witkoff will travel to Moscow to meet with Russian President Vladimir Putin. Meanwhile, Army Secretary Dan Driscoll will hold discussions with Ukrainian representatives to narrow differences on the remaining points of the agreement.
Trump also confirmed his intention to meet personally with Ukrainian President Volodymyr Zelensky and with Putin, though he emphasized that such meetings will only take place “when the agreement is fully finalized or in its final stage.”
The president claimed that his administration has made “tremendous progress” toward resolving the conflict and reiterated that the war “never would have started” if he had been in the White House at the onset of the crisis.
The U.S.-backed peace plan consists of 28 points and has been revised following feedback from both sides. According to Trump, only “a few points of disagreement” remain under active discussion.
One of the most controversial aspects of the proposal is the suggestion that Ukraine cede parts of the Donbas region to Russia and limit the size of its armed forces. Kyiv is working closely with Washington to soften these clauses in search of an arrangement that does not compromise its sovereignty or security.
With this diplomatic push, Trump aims to solidify his role as the main mediator in the conflict and steer the war toward a political resolution after years of devastation, humanitarian crisis, and rising global geopolitical tensions.
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