BRASILIA Feb 20 Brazil's budget freeze is a
step in the right direction and highlights the fact that the
government is seeking to better anchor expectations on fiscal
policy, a senior analyst with Fitch Ratings said on Thursday.
"That said, we have to monitor the actual implementation and
fiscal performance in 2014 to judge how effective the spending
freezes turn out to be, especially in the context of continued
downside risks to growth projections," said Shelly Shetty, head
of Fitch Ratings Latin America sovereigns, in a note.
Brazil said it would freeze 44 billion reais ($18.44
billion) in budgeted public spending this year in a bid to
recover investors' credibility.