# USD/BRL Flat As Investors Brace for Rate Hikes Amid Higher Inflation

> The Brazilian real traded sideways midweek as investors anticipated further central bank rate hikes after mid-month CPI rose 0.89% in August, above forecasts. Annualized inflation climbed to 9.3%. Consumer confidence eased slightly as analysts linked uncertainty to the Delta variant.

- Date: 2021-08-25 · published 2021-08-25T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/45758-usd-brl-flat-as-investors-brace-for-rate-hikes-amid-higher-inflation
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Higher inflation makes additional BCB tightening more likely, which supports BRL carry, but fiscal and political risks limit the currency's upside. For feed buyers, a firmer real tends to slow Brazilian export selling of soy and corn, a modest offset to dollar-driven prices.

## Read by commodity

- USDBRL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-09-23 | [BoE sees growing case for rate rise as inflation to stay higher for longer \| Reuters](https://feedsoft.ai/events/45307-boe-sees-growing-case-for-rate-rise-as-inflation-to-stay-higher-for-longer.md) | +2.6% | +7.1% |
| USDBRL | 2023-09-26 | [Brazil inflation accelerates as cenbank reiterates rate cut pace](https://feedsoft.ai/events/34321-brazil-inflation-accelerates-as-cenbank-reiterates-rate-cut-pace.md) | +2.3% | +0.7% |
| USDBRL | 2025-03-27 | [Brazil's central bank signals need for higher rates for longer](https://feedsoft.ai/events/25807-brazil-s-central-bank-signals-need-for-higher-rates-for-longer.md) | -0.7% | -0.7% |
| USDBRL | 2022-12-07 | [Brazil Holds Key Rate at 13.75% as Lula’s Spending Plan Adds to Inflation Risk - Bloomberg](https://feedsoft.ai/events/38433-brazil-holds-key-rate-at-13-75-as-lula-s-spending-plan-adds-to-inflation-risk.md) | +0.5% | +2.7% |
| USDBRL | 2023-12-11 | [Exchange rate seen as stable amid high interest rate differential](https://feedsoft.ai/events/32939-exchange-rate-seen-as-stable-amid-high-interest-rate-differential.md) | +0.1% | -0.7% |

## Sources

- fxdailyreport.com: https://fxdailyreport.com/usd-brl-flat-as-investors-brace-for-rate-hikes-amid-higher-inflation/

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