Brazil government set to loosen 2025 fiscal target, says source

Brazil's government is expected to loosen its fiscal target for 2025 but is poised to keep it in positive territory, a source familiar with the matter told Reuters on Monday.

The government must set next year's fiscal target by April 15 as part of the budget guidelines bill it sends to Congress.

Local newspaper Folha de S.Paulo reported earlier in the day that the government was mulling lowering the target to between 0% and 0.25% of gross domestic product (GDP), compared to last year's indication of a 0.5% surplus goal for 2025.