# Clash Over Brazil’s Inflation Target Is Having an Impact on Its Markets

> Brazilian stocks and the real fell after Bloomberg reported that President Lula's administration was pushing for an early review of the inflation target with the aim of raising it. Markets have priced in higher long-term interest rates as a result, the opposite of the government's goal of cheaper credit.

- Date: 2023-02-11 · published 2023-02-11T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/37528-clash-over-brazil-s-inflation-target-is-having-an-impact-on-its-markets
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Currency weakness and higher rates raise the cost of financing for Brazilian agribusiness, while a weaker real could make Brazilian exports more competitive; the effect on feed commodity prices is indirect.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2026-09-01 | [Election Angst Fuels Bruising Week in Brazil Markets](https://feedsoft.ai/events/18109-election-angst-fuels-bruising-week-in-brazil-markets.md) | -1.9% | +1.0% |
| USDBRL | 2024-06-25 | [Lula’s spending plans turn heat on Brazilian markets](https://feedsoft.ai/events/29989-lula-s-spending-plans-turn-heat-on-brazilian-markets.md) | +3.4% | +3.1% |
| USDBRL | 2024-06-28 | [Brazil's Campos Neto says a lack of confidence in handling of public accounts impacts market prices](https://feedsoft.ai/events/29987-brazil-s-campos-neto-says-a-lack-of-confidence-in-handling-of-public-accounts.md) | -0.9% | +2.3% |
| USDBRL | 2025-08-27 | [Inflation surprise, Trump’s attack on Fed weigh on Brazilian assets](https://feedsoft.ai/events/23528-inflation-surprise-trump-s-attack-on-fed-weigh-on-brazilian-assets.md) | +0.4% | -2.1% |
| USDBRL | 2025-06-26 | [Political tension over financial tax bill weighs on Brazilian markets](https://feedsoft.ai/events/24423-political-tension-over-financial-tax-bill-weighs-on-brazilian-markets.md) | -2.3% | -0.7% |

## Sources

- bloomberglinea.com: https://www.bloomberglinea.com/2023/02/11/the-clash-over-brazils-inflation-target-is-having-an-impact-on-its-markets/

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