# Brazil Holds Key Rate at 13.75% as Lula’s Spending Plan Adds to Inflation Risk - Bloomberg

> Brazil's central bank held its benchmark Selic rate at 13.75% and pledged to keep rates stable until inflation expectations fall. It also raised its inflation estimates, citing concerns over higher public spending by the incoming administration.

- Date: 2022-12-07 · published 2022-12-07T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/38433-brazil-holds-key-rate-at-13-75-as-lula-s-spending-plan-adds-to-inflation-risk
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Higher-for-longer rates and a weaker real tied to fiscal risk can influence Brazilian export currency and financing costs, with only indirect effects on feed prices.

## Read by commodity

- USDBRL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2023-09-26 | [Brazil inflation accelerates as cenbank reiterates rate cut pace](https://feedsoft.ai/events/34321-brazil-inflation-accelerates-as-cenbank-reiterates-rate-cut-pace.md) | +2.3% | +0.7% |
| USDBRL | 2021-09-23 | [BoE sees growing case for rate rise as inflation to stay higher for longer \| Reuters](https://feedsoft.ai/events/45307-boe-sees-growing-case-for-rate-rise-as-inflation-to-stay-higher-for-longer.md) | +2.6% | +7.1% |
| USDBRL | 2023-09-26 | [EMERGING MARKETS-Brazil's real steady after inflation data, Hungary trims interest rates](https://feedsoft.ai/events/34325-emerging-markets-brazil-s-real-steady-after-inflation-data-hungary-trims.md) | +2.3% | +0.7% |
| USDBRL | 2023-03-23 | [Brazil’s Central Bank maintains basic interest rate at 13.75% a year \| Agência Brasil](https://feedsoft.ai/events/37069-brazil-s-central-bank-maintains-basic-interest-rate-at-13-75-a-year-agencia.md) | -2.3% | -4.0% |
| USDBRL | 2021-08-25 | [USD/BRL Flat As Investors Brace for Rate Hikes Amid Higher Inflation](https://feedsoft.ai/events/45758-usd-brl-flat-as-investors-brace-for-rate-hikes-amid-higher-inflation.md) | -2.6% | -0.1% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2022-12-07/brazil-holds-key-rate-at-13-75-as-lula-s-spending-plan-adds-to-inflation-risk

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