# Brazil's real drops as larger-than-expected rate hike fails to satisfy | Financial Post

> Brazil's real fell about 1% after the central bank raised its Selic rate by 150 basis points, more than the 100 bps expected in a Reuters poll. Traders had wanted a more hawkish stance, and the real's decline was seen as likely to be temporary.

- Date: 2021-10-28 · published 2021-10-28T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/44779-brazil-s-real-drops-as-larger-than-expected-rate-hike-fails-to-satisfy
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A weaker real makes Brazilian soybeans, corn and meal cheaper in dollar terms, which can add export competitiveness and pressure world prices. The aggressive tightening also raises concern about slower Brazilian growth and feed demand.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2019-08-01 | [Brazil's Larger-Than-Expected Rate Cut Is a Sign of More to Come](https://feedsoft.ai/events/10779-brazil-s-larger-than-expected-rate-cut-is-a-sign-of-more-to-come.md) | +6.1% | +10.6% |
| USDBRL | 2023-05-31 | [Brazil's real leads fall in Latam FX, Chile's peso down as copper output drops \| Financial Post](https://feedsoft.ai/events/36145-brazil-s-real-leads-fall-in-latam-fx-chile-s-peso-down-as-copper-output-drops.md) | -3.0% | -4.3% |
| USDBRL | 2022-04-28 | [Brazil real hit by surging dollar, focus shifts to earnings \| Financial Post](https://feedsoft.ai/events/6865-brazil-real-hit-by-surging-dollar-focus-shifts-to-earnings-financial-post.md) | -0.2% | -3.1% |
| USDBRL | 2020-11-11 | [Brazil's real, Mexican peso hit by tepid economic data \| Financial Post](https://feedsoft.ai/events/50377-brazil-s-real-mexican-peso-hit-by-tepid-economic-data-financial-post.md) | -1.2% | -5.9% |
| USDBRL | 2021-01-29 | [Brazil's real lags Latam FX on a barrage of weak data \| Financial Post](https://feedsoft.ai/events/49383-brazil-s-real-lags-latam-fx-on-a-barrage-of-weak-data-financial-post.md) | +0.5% | +3.2% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/brazils-real-drops-as-larger-than-expected-rate-hike-fails-to-satisfy

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