# Brazil’s Central Bank resumes tightening as Fed moves toward easing

> Brazil's central bank raised the Selic rate to 10.75% from 10.5% on September 18, 2024, its first increase since August 2022, with a unanimous vote. The same day the US Federal Reserve cut rates by 50 basis points, widening the rate differential between the two countries.

- Date: 2024-09-19 · published 2024-09-19T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/28521-brazil-s-central-bank-resumes-tightening-as-fed-moves-toward-easing
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A higher Selic and a wider rate gap with the US tend to support the real, which can make Brazilian commodity exports more expensive in dollar terms.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2017-01-17 | [Brazil real strengthens 1 pct as central bank resumes intervention](https://feedsoft.ai/events/73168-brazil-real-strengthens-1-pct-as-central-bank-resumes-intervention.md) | -1.2% | -3.1% |
| USDBRL | 2020-12-10 | [Brazil's real jumps after central bank hints at end of easing cycle \| Financial Post](https://feedsoft.ai/events/49851-brazil-s-real-jumps-after-central-bank-hints-at-end-of-easing-cycle-financial.md) | -0.4% | +6.4% |
| USDBRL | 2019-08-27 | [Brazil central bank to continue FX intervention on Wednesday as real nears record low - The Business Times](https://feedsoft.ai/events/57788-brazil-central-bank-to-continue-fx-intervention-on-wednesday-as-real-nears.md) | +0.5% | +0.5% |
| USDBRL | 2017-04-17 | [EMERGING MARKETS-Brazil real jumps on central bank intervention](https://feedsoft.ai/events/71706-emerging-markets-brazil-real-jumps-on-central-bank-intervention.md) | +0.1% | -0.8% |
| USDBRL | 2023-02-17 | [Brazil’s Central Bank Head Extends Hand to Lula, But Maintains Key Demands](https://feedsoft.ai/events/37529-brazil-s-central-bank-head-extends-hand-to-lula-but-maintains-key-demands.md) | -0.9% | +1.0% |

## Sources

- valorinternational.globo.com: https://valorinternational.globo.com/economy/news/2024/09/19/brazils-central-bank-resumes-tightening-as-fed-moves-toward-easing.ghtml

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