# Brazil markets fall as central bank split decision triggers concern about dovish turn

> Brazil's central bank cut its Selic rate by 25 basis points to 10.50% in a split decision, with all four directors appointed by President Lula dissenting in favor of a larger cut. Markets reacted with the real falling more than 1% against the dollar and longer-dated rate futures rising sharply.

- Date: 2024-05-09 · published 2024-05-09T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/30475-brazil-markets-fall-as-central-bank-split-decision-triggers-concern-about
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Concern about politically driven easing weakens the real, which can lower Brazilian export prices for soy and corn and shift global feed trade flows toward Brazilian supply.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2020-03-18 | [Brazil central bank FX, bond intervention fails to prevent market rout](https://feedsoft.ai/events/6393-brazil-central-bank-fx-bond-intervention-fails-to-prevent-market-rout.md) | +1.1% | +3.8% |
| USDBRL | 2020-03-04 | [Brazil central bank to intervene in FX swaps market on Thursday](https://feedsoft.ai/events/54310-brazil-central-bank-to-intervene-in-fx-swaps-market-on-thursday.md) | +4.1% | +15.5% |
| USDBRL | 2020-03-09 | [Brazil stocks post biggest fall since 1998, central bank intervenes twice in FX](https://feedsoft.ai/events/6407-brazil-stocks-post-biggest-fall-since-1998-central-bank-intervenes-twice-in-fx.md) | +2.7% | +14.6% |
| USDBRL | 2020-03-18 | [Brazil central bank wades into FX, bond markets but real slump accelerates \| Financial Post](https://feedsoft.ai/events/54309-brazil-central-bank-wades-into-fx-bond-markets-but-real-slump-accelerates.md) | +1.1% | +3.8% |
| USDBRL | 2022-05-05 | [Brazil's real down 2% as central bank strikes cautious note; Stocks reverse course \| Reuters](https://feedsoft.ai/events/41605-brazil-s-real-down-2-as-central-bank-strikes-cautious-note-stocks-reverse.md) | +2.2% | -4.3% |

## Sources

- reuters.com: https://www.reuters.com/world/americas/brazil-markets-fall-central-bank-split-decision-triggers-concern-about-dovish-2024-05-09/

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