# Brazil: BCB to cut rates by 50bps – TDS — Octa

> TD Securities expects the Brazilian central bank to cut its Selic rate by 50 basis points at its October meeting and to signal further easing. Analysts cite inflation at or below target and a large output gap as reasons for the cut. They also note that the real will remain tied to broad dollar moves and fiscal reform prospects.

- Date: 2019-10-30 · published 2019-10-30T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/56777-brazil-bcb-to-cut-rates-by-50bps-tds-octa
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Lower Brazilian rates tend to weaken the real, which can make Brazilian soybean and corn exports more competitive on world markets. The effect on feed prices is likely to be small unless the currency move is large.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2019-07-30 | [Brazil: BCB to ease - TDS — Octa](https://feedsoft.ai/events/58290-brazil-bcb-to-ease-tds-octa.md) | +4.1% | +9.7% |
| USDBRL | 2017-09-05 | [Brazil: Rate cuts to continue](https://feedsoft.ai/events/69154-brazil-rate-cuts-to-continue.md) | -1.3% | +0.9% |
| USDBRL | 2019-09-19 | [Brazil Cuts Interest Rate to Fresh Record Low](https://feedsoft.ai/events/57287-brazil-cuts-interest-rate-to-fresh-record-low.md) | +2.0% | +1.6% |
| USDBRL | 2017-04-12 | [Brazilian central bank likely to cut key rate by 100 bps, says Commerzbank \| EconoTimes](https://feedsoft.ai/events/71708-brazilian-central-bank-likely-to-cut-key-rate-by-100-bps-says-commerzbank.md) | -1.5% | +1.2% |
| USDBRL | 2019-08-01 | [Brazil's Larger-Than-Expected Rate Cut Is a Sign of More to Come](https://feedsoft.ai/events/10779-brazil-s-larger-than-expected-rate-cut-is-a-sign-of-more-to-come.md) | +6.1% | +10.6% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/766786/

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