On Thursday, The Wall Street Journal reported that Brazil plans to curb spending in order to regain confidence of the markets, avoid a credit-rating cut and help the central bank fight inflation.

The government will freeze 44 billion Brazilian reais (US$17.9 billion) already budgeted for spending this year, Finance Minister Guido Mantega said. The government also plans to use a primary surplus of 99 billion reais to pay down the public debt.

The announcement was closely watched by analysts looking for signs of fiscal discipline after two consecutive years in which the government had to resort to accounting maneuvers to meet its targets.  Read the whole story here.