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Brazil's central bank raised the Selic rate by 150 basis points, from 6.25% to 7.75%, its largest hike in nearly two decades. The bank warned that fiscal spending plans threaten to unanchor inflation expectations and signaled another hike of the same size at its next meeting.
Tighter policy supports the real and narrows Brazil's export price advantage in soybeans, corn and meal. Stronger rate policy may also slow Brazilian economic growth and domestic feed demand.
forex.caadminOct 28, 2021After 213 past bearish macro events, Brazilian Real (BRL per USD) moved a median -0.2% over 5 sessions (46% higher; middle half -1.5% to +0.9%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
