Brazil's Fiscal Measures

SAO PAULO (Reuters) – Brazil's President Luiz Inacio Lula da Silva will analyze two fiscal packages with spending cut measures amounting up to 15 billion reais ($2.6 billion), according to CNN Brasil on Thursday.

Lula will consider two packages: one about 10 billion reais and the other around 15 billion reais, as reported by sources from the government's economic team.

Following the CNN Brasil report, the Brazilian real weakened against the U.S. dollar, short-term future interest rates peaked, and Brazil's equity benchmark Bovespa reversed earlier gains.

Analysts suggest that to address the country's fiscal issues, an amount between 30 billion and 50 billion reais would be necessary, although opinions vary among market participants.

> ($1 = 5.7125 reais)