# Brazil Cuts Rates to 3.75% With Recession Likely After Virus - Bloomberg

> Brazil cut its benchmark interest rate by half a point to a record low to mitigate coronavirus effects. A Bloomberg survey shows economists expect the coronavirus to push Latin America's largest economy into recession.

- Date: 2020-03-18 · published 2020-03-18T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/11021-brazil-cuts-rates-to-3-75-with-recession-likely-after-virus-bloomberg
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Expected recession lowers Brazilian domestic demand for animal protein and feed, while lower rates may weaken the real, which is a mixed signal for commodity prices.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2020-03-05 | [Brazilian Real (BRL USD) Plunges to Record Low as Rate Cut Seen - Bloomberg](https://feedsoft.ai/events/9274-brazilian-real-brl-usd-plunges-to-record-low-as-rate-cut-seen-bloomberg.md) | +3.0% | +15.4% |
| USDBRL | 2019-11-26 | [Brazil Intervenes Twice to Prop Up Real After Fall to Record - Bloomberg](https://feedsoft.ai/events/56272-brazil-intervenes-twice-to-prop-up-real-after-fall-to-record-bloomberg.md) | -0.5% | -3.1% |
| USDBRL | 2019-09-19 | [Brazil Cuts Interest Rate to Fresh Record Low](https://feedsoft.ai/events/57287-brazil-cuts-interest-rate-to-fresh-record-low.md) | +2.0% | +1.6% |
| USDBRL | 2022-12-07 | [Brazil Holds Key Rate at 13.75% as Lula’s Spending Plan Adds to Inflation Risk - Bloomberg](https://feedsoft.ai/events/38433-brazil-holds-key-rate-at-13-75-as-lula-s-spending-plan-adds-to-inflation-risk.md) | +0.5% | +2.7% |
| USDBRL | 2017-09-05 | [Brazil: Rate cuts to continue](https://feedsoft.ai/events/69154-brazil-rate-cuts-to-continue.md) | -1.3% | +0.9% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2020-03-18/brazil-cuts-key-rate-to-3-75-with-recession-likely-after-virus

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.