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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.

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“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.

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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.

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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.

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International

First recipient of genetically modified pig kidney dies two months post-transplant

Richard Slayman, the first recipient of a genetically modified pig kidney, has died nearly two months after the transplant in Massachusetts. Slayman, 62, had been suffering from end-stage renal failure for years and had undergone various unsuccessful treatments before this surgery. Initially deemed successful, the transplant was predicted by doctors to last at least two years.

Massachusetts General Hospital, where the surgery was performed, expressed “deep sadness” and condolences to Slayman’s family. The hospital announced his passing and stated there are “no indications” that it was a result of the transplant.

Slayman, from Weymouth, was the first living person to undergo this procedure, which had previously been attempted only with brain-dead donors. On two other occasions, regular patients had received similar transplants, but their immune systems had rejected them.

Slayman’s death adds to those of two other patients worldwide who had received pig heart transplants and died within months.

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International

Duque sees “despair” and “insecurity” in Petro’s attitude and proposes a “democratic debate”

Former Colombian President Iván Duque sees that there is “despair” and “insecurity” in his successor, Gustavo Petro, who accused him of being a “terrorist” for the “murder” of dozens of young people at the hands of the public forces during the 2021 protests.

In a message published on the social network X, Duque (2018-2022) made a parallel between his career and that of Petro. He asked “that the healthy democratic debate begin now” for the presidential elections of 2026.

“There is despair, insecurity, paranoia, schizophrenia evident in this behavior, which intensifies with the drunkenness of applause and the motivation to eclipse failures and scandals. No more threats or attacks. Let the tragedy end on August 7, 2026 (the day that Petro’s mandate culminates), but let the healthy democratic debate begin without stopping at more crazy things to attract attention,” Duque said.

The day before, President Petro called his predecessor a “terrorist” for the “murder” of young people during the social outcuse of 2021. According to social organizations, more than 80 people died violently, most of them from police abuses.

“When 60 young people killed by the State die, burned, tortured, when thousands of young people were arrested, the question is then: who was the terrorist? Who should be described as a terrorist?” Petro asked in a government act in Cali, capital of the department of Valle del Cauca (southwest).

Petro added: “The president of the republic today has to say that the terrorist was not the popular youth, that the terrorist was the State of Colombia and particularly the Government of (…) Mr. Duque. The 60 killed in Cali by you were not terrorists, the terrorist was you.”

In that sense, Duque wondered, “Who is the terrorist?” He recalled that he has never been a member of “illegal or terrorist armed groups,” as if Petro did, who was a guerrilla of the 19 de Abril Movement (M-19).

“I have never made an apology for terrorism by flying flags of illegal armed groups,” added the former president, referring to the controversy that erose last month when Petro ordered the M-19 flag to be displayed in a public event in which he commemorated the murder 34 years ago of former guerrilla commander Carlos Pizarro.

Among other issues that Duque reminded Petro of, there are the “alliances with criminals in prisons to make the most of the election.” Or the call to young people to “express themselves with violence and vandalism with the promise of impunity if they are prosecuted.”

“I have never exalted the seizure of the Palace of Justice (in 1985), the murder of José Raquel Mercado (union leader kidnapped and executed by the M-19), the Tacueyó Massacre (in the 1980s), nor hundreds of kidnappings calling them ‘revolutionary’ acts,” Duque added in reference to Petro’s attitudes.

Likewise, Duque said that he has not “promoted the paramilitary leaders to return to the country to avoid their punishments, revictimizing those who have caused them so much pain,” referring to what happened to the former commander of the United Self-Defense of Colombia (AUC) Salvatore Mancuso, appointed peace manager by the Government and who may be released in the coming days.

“I have not threatened journalists, businessmen, politicians, judges, guilds, industrialists, intellectuals for not thinking like me, much less disagreeing with me,” Duque concluded in his decalogue of response to Petro.

Former President Álvaro Uribe (2002-2010) accused the current president of Colombia, Gustavo Petro, of wanting to instigate “civil war” in the country and of constantly challenging the Constitution.

“The president instigates civil war. Let’s add so that that war does not divide the citizenry, so that it is the president’s against all of Colombia,” said Uribe, leader of the opposition party Centro Democrático, in a video published on his social networks.

Uribe assured that “the president of the republic, instead of reorienting the young people of Cali, as part of the support he wants to give them, instigates them more to violence, applauds violent acts.”

“He repeats to them that my permanence in politics is attachment to power when he should give thanks that that permanence allowed him to base himself on anti-uribism for his election,” said Uribe, who ruled in the periods 2002-2006 and 2006-2010.

He also stated that Petro defies the Constitution as a step “in his purpose of unleashing a civil war between compatriots.”

“We work so that respect for the Constitution and respect for the ideas of fraternal economy one more to the citizenry (…) That it is against all of Colombia, that it does not divide the Colombians more,” he concluded.

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International

14 of the injured left by a train crash in Buenos Aires are still interned

Fourteen people remain hospitalized due to the train crash of the San Martín line that occurred the day before in Buenos Aires, whose formations are being withdrawn after the expertise.

Of the 90 people evacuated from the seven cars of the passenger train, the mayor of Buenos Aires, Jorge Macri, said that 20 were yellow code and were discharged, and 30 are red code, of which 14 remain interned.

“We talk about misfortune with luck. There are no misfortunes with luck,” Macri told the media stationed at the scene of the accident, in the capital neighborhood of Palermo, regarding the fact that there were no fatalities.

“Obviously this could have been much more serious if there were passengers in the van; that helped,” but he highlighted the professionalism of the fire service and the Emergency Medical Care System that arrived after half an hour.

The accident occurred this Friday at 10:31 (13:31 GMT), when a formation with passengers collided with a locomotive and an empty van and as a result of the impact 60 people were affected with injuries of different severity.

The incident occurred for causes that are still grounds for investigation, which is being processed in the national criminal and correctional court 11 by judge Julián Ercolini.

The formations affected by the collision are being removed this Saturday after the scientific police carried out the relevant judicial expertise.

The Secretary of Transport of Argentina, Franco Mogetta, said that “there are multiple hypotheses” about the causes of the accident and acknowledged that there were reports of “cable theft.”

The secretary of the train drivers’ union La Fraternidad, Omar Maturano, had declared that “work has been working for approximately ten days without a signal, due to the degradation that exists today on the railroad and the lack of security because the signaling cables are stolen,” and that the route of the trains is made by means of papers or flags.

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