# USD/BRL Points Lower as Brazilian Central Bank Raises Selic Rate by 1.5% | Forex trading, free forex education | Forex.ca

> 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.

- Date: 2021-10-28 · published 2021-10-28T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/44786-usd-brl-points-lower-as-brazilian-central-bank-raises-selic-rate-by-1-5-forex
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

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.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-07-05 | [Short USD/BRL on BCB’s Aggressive Tightening: Q3 Top Trading Opportunities \| Forex trading, free forex education \| Forex.ca](https://feedsoft.ai/events/9908-short-usd-brl-on-bcb-s-aggressive-tightening-q3-top-trading-opportunities-forex.md) | +3.0% | +1.6% |
| USDBRL | 2024-09-18 | [Brazil central bank raises rates by 25 bp, first hike in two years](https://feedsoft.ai/events/12467-brazil-central-bank-raises-rates-by-25-bp-first-hike-in-two-years.md) | -0.6% | +2.9% |
| USDBRL | 2017-01-17 | [Brazil real strengthens 1 pct as central bank resumes intervention](https://feedsoft.ai/events/73168-brazil-real-strengthens-1-pct-as-central-bank-resumes-intervention.md) | -1.2% | -3.1% |
| USDBRL | 2021-10-13 | [Brazil central bank sells $1 bln in surprise FX swap auction](https://feedsoft.ai/events/44784-brazil-central-bank-sells-1-bln-in-surprise-fx-swap-auction.md) | +0.4% | -0.5% |
| USDBRL | 2018-05-22 | [Folha de S.Paulo - Internacional - En - Business - US Dollar Closes below R$ 3.70 after Major Intervention by Brazilian Central Bank - 22/05/2018](https://feedsoft.ai/events/9715-folha-de-s-paulo-internacional-en-business-us-dollar-closes-below-r-3-70-after.md) | +0.5% | +0.6% |

## Sources

- forex.ca: https://www.forex.ca/usd-brl-points-lower-as-brazilian-central-bank-raises-selic-rate-by-1-5/

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