# Brazil's real rallies over 1% ahead of interest rate decision | Financial Post

> Brazil's real rose more than 1% on December 8 ahead of a widely expected 150 basis point central bank rate hike to 9.25%. Retail sales fell in October for a third straight month as inflation eroded consumer purchasing power. The real remains down about 12% from its 2021 peak.

- Date: 2021-12-08 · published 2021-12-08T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/43829-brazil-s-real-rallies-over-1-ahead-of-interest-rate-decision-financial-post
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A firmer real and tighter Brazilian policy slow domestic consumption and can make Brazilian dollar-priced exports less competitive, with limited direct effect on feed commodity prices.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-07-23 | [Brazil's real gains on rate-hike bets, but loses for the week \| Financial Post](https://feedsoft.ai/events/46261-brazil-s-real-gains-on-rate-hike-bets-but-loses-for-the-week-financial-post.md) | -3.0% | +3.8% |
| USDBRL | 2022-06-29 | [Fed rate hike bets hit Latam assets; Brazil's real jumps \| Financial Post](https://feedsoft.ai/events/41148-fed-rate-hike-bets-hit-latam-assets-brazil-s-real-jumps-financial-post.md) | +3.9% | +0.8% |
| 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 | 2021-11-08 | [Brazil's real dips on inflation woes, Chile's peso supported by copper \| Financial Post](https://feedsoft.ai/events/44258-brazil-s-real-dips-on-inflation-woes-chile-s-peso-supported-by-copper-financial.md) | -1.4% | +1.7% |
| USDBRL | 2022-02-22 | [Brazil central bank chief says higher interest rates, positive fiscal are supporting FX \| Financial Newsletter](https://feedsoft.ai/events/42914-brazil-central-bank-chief-says-higher-interest-rates-positive-fiscal-are.md) | +0.7% | -3.4% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/brazils-real-rallies-over-1-ahead-of-interest-rate-decision

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