# Brazil central bank chief says higher interest rates, positive fiscal are supporting FX | Financial Newsletter

> Brazil's central bank chief, Roberto Campos Neto, said on February 22 that high interest rates are attracting financial inflows that are strengthening the real. He also credited positive fiscal figures and a shift in global flows toward companies that perform well in high-inflation environments. The benchmark rate stands at 10.75% after an aggressive tightening cycle that started from 2% in March 2021.

- Date: 2022-02-22 · published 2022-02-22T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/42914-brazil-central-bank-chief-says-higher-interest-rates-positive-fiscal-are
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Currency strength from rate-driven inflows lowers the local cost of imported grains, meal and energy, which can cushion Brazilian feed prices. The real's direction also influences how much Brazilian soybean and corn exporters sell into dollar markets.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-10-19 | [Brazil central bank intervenes in FX market rattled by new spending \| Financial Post](https://feedsoft.ai/events/44783-brazil-central-bank-intervenes-in-fx-market-rattled-by-new-spending-financial.md) | +1.4% | -0.4% |
| USDBRL | 2022-01-07 | [Brazil FX backed by good fiscal results in south hemisphere summer lull- Reuters poll – Financial Newsletter](https://feedsoft.ai/events/43354-brazil-fx-backed-by-good-fiscal-results-in-south-hemisphere-summer-lull-reuters.md) | -3.3% | -6.6% |
| USDBRL | 2020-03-09 | [Brazil central bank to continue FX intervention as long as it takes to calm market \| Financial Post](https://feedsoft.ai/events/6408-brazil-central-bank-to-continue-fx-intervention-as-long-as-it-takes-to-calm.md) | +2.7% | +14.6% |
| USDBRL | 2020-12-10 | [Brazil's real jumps after central bank hints at end of easing cycle \| Financial Post](https://feedsoft.ai/events/49851-brazil-s-real-jumps-after-central-bank-hints-at-end-of-easing-cycle-financial.md) | -0.4% | +6.4% |
| USDBRL | 2021-12-08 | [Brazil's real rallies over 1% ahead of interest rate decision \| Financial Post](https://feedsoft.ai/events/43829-brazil-s-real-rallies-over-1-ahead-of-interest-rate-decision-financial-post.md) | +0.7% | +1.3% |

## Sources

- financialnewsletter.com: https://financialnewsletter.com/brazil-central-bank-chief-4/

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