Brazil's Lula says government is committed to fiscal responsibility

FILE PHOTO: Brazil's President Luiz Inacio Lula da Silva looks on as he speaks during the inauguration of the International Book Fair (FilBo) in Bogota, Colombia April 17, 2024. REUTERS/Luisa Gonzalez/File Photo

(Reuters) - Brazilian President Luiz Inacio Lula da Silva said on Wednesday that fiscal responsibility is a commitment to be strictly followed in his administration, although he assured the government will keep its cash transference policies.

Brazilian assets suffered a sell-off in recent weeks as markets fear fiscal deterioration amid the government's reluctance to cut spending, which has raised doubts about its ability to reach its goal of eliminating the primary deficit this year.

(Reporting by Luana Maria Benedito)