# USD/BRL: Hawkish BCB to provide further anchor to the real – Credit Suisse — Octa

> Credit Suisse and most analysts expected the Banco Central do Brasil to raise its policy rate by 100bps at its August 4 meeting. Credit Suisse said a hawkish stance with forward guidance for further 100bps hikes would support the real. It kept a near-term USD/BRL target of 5.00 and flagged political and fiscal risks.

- Date: 2021-08-04 · published 2021-08-04T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/45761-usd-brl-hawkish-bcb-to-provide-further-anchor-to-the-real-credit-suisse-octa
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Expected aggressive rate hikes widen Brazil's carry advantage and tend to strengthen the real, which lowers the local-currency cost of dollar-priced feed imports. A stronger real can also encourage Brazilian exporters to sell grain more slowly.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2020-12-09 | [USD/BRL to extend the decline to 5.00 – Credit Suisse — Octa](https://feedsoft.ai/events/49855-usd-brl-to-extend-the-decline-to-5-00-credit-suisse-octa.md) | +0.6% | +6.0% |
| USDBRL | 2018-10-29 | [USD/BRL: Further recovery of the real for now until optimism fades - ABN AMRO — Octa](https://feedsoft.ai/events/62738-usd-brl-further-recovery-of-the-real-for-now-until-optimism-fades-abn-amro-octa.md) | +0.7% | +6.1% |
| USDBRL | 2021-07-12 | [USD/BRL: Real should continue to find demand this summer – ING — Octa](https://feedsoft.ai/events/46263-usd-brl-real-should-continue-to-find-demand-this-summer-ing-octa.md) | -3.2% | -0.7% |
| USDBRL | 2021-07-05 | [USD/BRL to end the year at 5.10 as the real shows its strength – MUFG — Octa](https://feedsoft.ai/events/9909-usd-brl-to-end-the-year-at-5-10-as-the-real-shows-its-strength-mufg-octa.md) | +3.0% | +1.6% |
| USDBRL | 2019-01-29 | [Brazilian real likely to strengthen further \| Lombard Odier](https://feedsoft.ai/events/61297-brazilian-real-likely-to-strengthen-further-lombard-odier.md) | -2.5% | -0.7% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/916515/

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