# Trump's tariffs raise fears Brazil's central bank is out of step on inflation

> Brazil's central bank raised its key rate by 100 basis points and flagged a downside risk to inflation from trade shocks. Commentary suggests concerns that policy may be out of step with inflation amid Trump's tariffs.

- Date: 2025-02-03 · published 2025-02-03T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/26256-trump-s-tariffs-raise-fears-brazil-s-central-bank-is-out-of-step-on-inflation
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Higher Brazilian interest rates and currency moves affect the cost of Brazilian feed exports and domestic meat and feed demand. The effect on commodity prices is indirect.

## Read by commodity

- USDBRL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-09-26 | [Brazil makes first FX intervention of the year - Central Banking](https://feedsoft.ai/events/39790-brazil-makes-first-fx-intervention-of-the-year-central-banking.md) | +3.1% | +0.8% |
| USDBRL | 2020-06-09 | [Brazil central bank watching FX, commodities impact on inflation \| 1330 & 101.5 WHBL](https://feedsoft.ai/events/52815-brazil-central-bank-watching-fx-commodities-impact-on-inflation-1330-and-101-5.md) | +6.6% | +9.7% |
| USDBRL | 2023-09-26 | [Brazil inflation accelerates as cenbank reiterates rate cut pace](https://feedsoft.ai/events/34321-brazil-inflation-accelerates-as-cenbank-reiterates-rate-cut-pace.md) | +2.3% | +0.7% |
| USDBRL | 2019-12-02 | [Brazil's cenbank head says real is floating currency after Trump criticism](https://feedsoft.ai/events/55775-brazil-s-cenbank-head-says-real-is-floating-currency-after-trump-criticism.md) | -1.2% | -5.0% |
| USDBRL | 2021-03-12 | [FX Daily: Brazilian central bank’s line in the sand \| ING THINK](https://feedsoft.ai/events/48310-fx-daily-brazilian-central-bank-s-line-in-the-sand-ing-think.md) | -0.3% | +0.4% |

## Sources

- reuters.com: https://www.reuters.com/world/americas/trumps-tariffs-raise-fears-brazils-central-bank-is-out-step-inflation-2025-02-03/

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