# Brazil central bank minutes raise possibility of August rate cut | Reuters

> Brazil's central bank minutes signaled that a majority of policymakers see room for interest rate cuts, with the Selic held at 13.75%. Short-term rate futures moved lower and the yield curve priced a 25 basis point cut in August at about 95% probability.

- Date: 2023-06-27 · published 2023-06-27T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/35693-brazil-central-bank-minutes-raise-possibility-of-august-rate-cut-reuters
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Lower Brazilian rates tend to weaken the real, which makes Brazilian soybean and corn exports cheaper in dollar terms and can encourage farmer selling; a weaker real is generally bearish for dollar-priced grain and meal.

## Read by commodity

- SOY: bearish ▼
- CORN: bearish ▼
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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% |
| 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 | 2023-05-24 | [Lula’s Feud with Brazil’s Central Bank Raises Rates Dilemma to Global Stage](https://feedsoft.ai/events/36147-lula-s-feud-with-brazil-s-central-bank-raises-rates-dilemma-to-global-stage.md) | +3.1% | -3.6% |
| USDBRL | 2024-07-29 | [Economic uncertainties still prevent rate cut in Brazil, official says \| Reuters](https://feedsoft.ai/events/29478-economic-uncertainties-still-prevent-rate-cut-in-brazil-official-says-reuters.md) | +1.4% | -2.6% |
| USDBRL | 2021-01-21 | [Brazilian real drops as fiscal worries overshadow central bank optimism \| Financial Post](https://feedsoft.ai/events/49385-brazilian-real-drops-as-fiscal-worries-overshadow-central-bank-optimism.md) | +1.5% | +2.0% |
| SOY | 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) | +7.6% | +2.2% |
| SOY | 2018-05-24 | [Most FOMC participants say they may raise rates ‘soon’, minutes show - Central Banking](https://feedsoft.ai/events/64945-most-fomc-participants-say-they-may-raise-rates-soon-minutes-show-central.md) | -2.0% | -15.3% |
| SOY | 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) | -2.2% | -0.8% |

## Sources

- reuters.com: https://www.reuters.com/markets/rates-bonds/brazil-central-bank-signals-possibility-rate-cut-august-by-majority-view-2023-06-27/

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