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.

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“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.

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– 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.

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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

Kristi Noem credits Trump for mass migrant deportations by mexican president

U.S. Secretary of Homeland Security Kristi Noem claimed that Mexican President Claudia Sheinbaum has deported “more than half a million” migrants due to pressure from former President Donald Trump.

During a cabinet meeting highlighting the “achievements” of Trump’s administration in its first 100 days, Noem asserted that under the Republican leader’s influence, “Mexico has finally come to the table” to negotiate on migration and fentanyl trafficking.

“The president of Mexico told me she has returned just over half a million people before they reached our border,” Noem stated, criticizing media reports that suggest the Biden administration deported more migrants than Trump’s.

“I wish those deportations were counted,” Noem added, “because those people never made it to our border—she sent them back because you made her.” She went on to thank Trump: “They never made it here because they got the message—because you were so aggressive.”

Noem has made controversial claims about Sheinbaum in the past, prompting the Mexican leader to refute them.

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On April 1, Sheinbaum responded to one such statement by declaring, “The president answers to only one authority, and that is the people of Mexico,” after Noem said on Fox News that she gave Sheinbaum “a list of things Trump would like to see” and that Mexico’s actions would determine whether Trump granted tariff relief.

International

Vatican releases special “Sede Vacante” stamps ahead of papal transition

he Vatican’s post offices and select collector shops began selling special edition stamps this week to mark the period between the death of Pope Francis and the election of his successor.

Known as “Sede Vacante” stamps, they feature an image used on official Vatican documents during the interregnum between popes — two crossed keys without the papal tiara. These stamps went on sale Monday and will remain valid for postal use only until the new pontiff appears at the window overlooking St. Peter’s Square.

Until then, they can be used to send letters, postcards, and parcels. “Once the new pope is elected, the stamps lose their postal validity, but their collectible value rises,” said Francesco Santarossa, who runs a collectors’ shop across from St. Peter’s Square.

The Vatican has issued the stamps in four denominations: €1.25, €1.30, €2.45, and €3.20. Each is inscribed with “Città del Vaticano” and “Sede Vacante MMXXV” — Latin for “Vacant See 2025.”

International

Conclave to choose pope Francis’ successor could begin in early may

The conclave, which in the coming weeks must choose the successor to Pope Francis, will strictly follow a precise protocol refined over centuries.

The 135 cardinal electors, all under the age of 80, will cast their votes four times a day — except on the first day — until one candidate secures a two-thirds majority. The result will be announced to the world through the burning of the ballots with a chemical that produces the eagerly awaited white smoke, accompanied by the traditional cry of “Habemus Papam.”

The start date for the conclave could be announced today, as the cardinals are set to hold their fifth meeting since the pope’s passing. Luxembourg Cardinal Jean-Claude Hollerich suggested it could begin on May 5 or 6, following the traditional nine days of mourning. According to German Cardinal Reinhard Marx, the conclave could last only “a few days.”

Although the late Argentine pontiff appointed the majority of the cardinal electors, this does not necessarily ensure the selection of a like-minded successor. Francis’ leadership style differed significantly from that of his predecessor, Benedict XVI, a German theologian who was less fond of large public gatherings. It also marked a contrast with the popular Polish pope, John Paul II.

The Argentine Jesuit’s reformist papacy drew strong criticism from more conservative sectors of the Church, who are hoping for a doctrinally focused shift. His tenure was marked by efforts to combat clerical sexual abuse, elevate the role of women and laypeople, and advocate for the poor and migrants, among other causes.