# Brazil 50 basis-point rate cut comes into play as inflation edges lower

> Inflation in Brazil fell below this year's official target, leading economists to suggest the central bank could cut rates by 50 basis points rather than 25. The soft inflation data is the trigger for the revised expectation.

- Date: 2023-07-25 · published 2023-07-25T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/35239-brazil-50-basis-point-rate-cut-comes-into-play-as-inflation-edges-lower
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Lower Brazilian rates tend to weaken the real, which supports Brazilian export competitiveness in soybeans, meal and corn and can pressure global soymeal prices.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2019-08-01 | [Brazil's Larger-Than-Expected Rate Cut Is a Sign of More to Come](https://feedsoft.ai/events/10779-brazil-s-larger-than-expected-rate-cut-is-a-sign-of-more-to-come.md) | +6.1% | +10.6% |
| 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 | 2024-07-31 | [Brazil holds interest rates as expected, flags 'greater caution'](https://feedsoft.ai/events/29477-brazil-holds-interest-rates-as-expected-flags-greater-caution.md) | -0.2% | -2.7% |
| 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 | 2016-11-11 | [Uncertainty over Trump leads to reevaluation of rate cuts in Brazil - BNamericas](https://feedsoft.ai/events/74027-uncertainty-over-trump-leads-to-reevaluation-of-rate-cuts-in-brazil-bnamericas.md) | +0.7% | -0.4% |

## Sources

- reuters.com: https://www.reuters.com/world/americas/brazil-inflation-down-by-more-than-expected-month-mid-july-2023-07-25/

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