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Brazil's central bank raised its benchmark Selic rate by 25 basis points, its first increase in two years. The bank cited resilient economic activity, labor market pressures, a positive output gap, higher inflation projections and unanchored expectations as reasons for tighter policy.
Higher Brazilian interest rates attract foreign capital and tend to strengthen the real, which can lower the dollar cost of Brazilian soy and corn exports and firm domestic feed input costs. The move signals tighter credit conditions for Brazilian livestock and feed demand.
reuters.comMarcela AyresSep 18, 2024After 213 past bearish macro events, Brazilian Real (BRL per USD) moved a median -0.2% over 5 sessions (46% higher; middle half -1.5% to +0.9%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Brazil's central bank raised Selic by 25 bp, its first hike in two years, widening the rate differential versus the US and supporting BRL appreciation (lower BRL per USD).
