# LATAM FX Talking: Reaching the limit of rate cuts | reports | ING THINK

> ING's LATAM chief economist notes that central banks in Mexico, Colombia and Brazil are increasingly worried about financial market instability and FX outflows if interest rates fall further. Policymakers are therefore reaching the limits of further rate cuts. The analysis focuses on currency stability as a constraint on monetary policy.

- Date: 2020-07-06 · published 2020-07-06T12:00:00.000Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/52403-latam-fx-talking-reaching-the-limit-of-rate-cuts-reports-ing-think
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Colombian Peso (COP per USD)](https://feedsoft.ai/c/USDCOP.md)

## Why it matters

Currency stability concerns limit monetary easing in key South American feed-importing and soy-exporting economies, which can affect local currency costs of grain and meal trade.

## Read by commodity

- USDBRL: neutral
- USDCOP: neutral
- USDMXN: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2020-01-17 | [LATAM FX Talking: The mighty MXN \| reports \| ING THINK](https://feedsoft.ai/events/55298-latam-fx-talking-the-mighty-mxn-reports-ing-think.md) | -0.1% | +2.9% |
| USDBRL | 2024-03-22 | [Latam FX Talking: Policy rates are coming down quickly \| articles \| ING THINK](https://feedsoft.ai/events/31428-latam-fx-talking-policy-rates-are-coming-down-quickly-articles-ing-think.md) | +0.5% | +5.6% |
| USDBRL | 2024-08-12 | [Latam FX Talking: Politics, fiscal & copper in play \| articles \| ING THINK](https://feedsoft.ai/events/11945-latam-fx-talking-politics-fiscal-and-copper-in-play-articles-ing-think.md) | -0.6% | +1.7% |
| USDBRL | 2025-10-13 | [Latam FX Talking: Performing well despite local hazards \| articles \| ING THINK](https://feedsoft.ai/events/22621-latam-fx-talking-performing-well-despite-local-hazards-articles-ing-think.md) | -2.1% | -3.0% |
| USDBRL | 2021-03-12 | [FX Daily: Brazilian central bank’s line in the sand \| ING THINK](https://feedsoft.ai/events/48310-fx-daily-brazilian-central-bank-s-line-in-the-sand-ing-think.md) | -0.3% | +0.4% |

## Sources

- think.ing.com: https://think.ing.com/reports/latam-fx-talking-reaching-the-limit-of-rate-cuts/

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