# BRL: Plenty of space for BCB intervention – TDS — Octa

> TD Securities expects the Central Bank of Brazil to intervene in the spot market only when real-economy dollar flows are out of balance, not to prevent broader weakness in the real. It also forecasts the bank will slow its rate cuts to 25 basis point steps to avoid unsettling markets.

- Date: 2019-11-27 · published 2019-11-27T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/56276-brl-plenty-of-space-for-bcb-intervention-tds-octa
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Expectations of limited intervention and smaller rate cuts suggest the real may stay weak, keeping Brazil's import costs elevated. A slower easing cycle also reduces the chance of a sharp currency rebound.

## Read by commodity

- USDBRL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-09-26 | [Brazil makes first FX intervention of the year - Central Banking](https://feedsoft.ai/events/39790-brazil-makes-first-fx-intervention-of-the-year-central-banking.md) | +3.1% | +0.8% |
| USDBRL | 2021-02-26 | [Brazil intervenes in FX markets to arrest real's fall — Octa](https://feedsoft.ai/events/48851-brazil-intervenes-in-fx-markets-to-arrest-real-s-fall-octa.md) | +1.4% | +2.6% |
| USDBRL | 2020-02-14 | [Brazil's FX intervention may give respite - NYK Daily](https://feedsoft.ai/events/54783-brazil-s-fx-intervention-may-give-respite-nyk-daily.md) | +1.2% | +10.0% |
| USDBRL | 2021-08-25 | [USD/BRL Flat As Investors Brace for Rate Hikes Amid Higher Inflation](https://feedsoft.ai/events/45758-usd-brl-flat-as-investors-brace-for-rate-hikes-amid-higher-inflation.md) | -2.6% | -0.1% |
| USDBRL | 2020-09-16 | [USD/BRL: BCB unable to support the Brazilian real - TDS - Forex Crunch](https://feedsoft.ai/events/51309-usd-brl-bcb-unable-to-support-the-brazilian-real-tds-forex-crunch.md) | +3.5% | +5.6% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/777680/

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