# Brazil's central bank slashes 2019 GDP growth forecast, sees benign inflation

> Brazil's central bank cut its 2019 GDP growth forecast in its Quarterly Inflation report and projected benign inflation. It blamed spillover from the first-quarter economic contraction, persistently weak data, and expected investment hits from falling business and consumer confidence.

- Date: 2019-06-27 · published 2019-06-27T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/58795-brazil-s-central-bank-slashes-2019-gdp-growth-forecast-sees-benign-inflation
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

A weaker Brazilian growth outlook reduces domestic demand for feed-intensive meat and points to a softer real, which can make Brazilian soybean and corn exports cheaper in dollar terms. Benign inflation leaves room for future rate cuts that could weigh on the currency further.

## Read by commodity

- SBM: neutral
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-08-30 | [Brazil Real Swings on Fiscal Woes, Central Bank Interventions](https://feedsoft.ai/events/29017-brazil-real-swings-on-fiscal-woes-central-bank-interventions.md) | -0.8% | -3.6% |
| USDBRL | 2024-07-01 | [Brazil's central bank director says expansionary fiscal policy harms disinflation](https://feedsoft.ai/events/9452-brazil-s-central-bank-director-says-expansionary-fiscal-policy-harms.md) | -1.8% | +1.7% |
| USDBRL | 2020-06-01 | [Brazil cannot rely on foreign funding in short term, says central bank chief](https://feedsoft.ai/events/7614-brazil-cannot-rely-on-foreign-funding-in-short-term-says-central-bank-chief.md) | -8.7% | +0.8% |
| USDBRL | 2020-03-18 | [Brazil central bank FX, bond intervention fails to prevent market rout](https://feedsoft.ai/events/6393-brazil-central-bank-fx-bond-intervention-fails-to-prevent-market-rout.md) | +1.1% | +3.8% |
| USDBRL | 2024-08-30 | [Spot dollar closes higher for the 5th session despite interventions by the Central Bank \| Brasil 247](https://feedsoft.ai/events/29018-spot-dollar-closes-higher-for-the-5th-session-despite-interventions-by-the.md) | -0.8% | -3.6% |
| SBM | 2024-08-30 | [Brazil Real Swings on Fiscal Woes, Central Bank Interventions](https://feedsoft.ai/events/29017-brazil-real-swings-on-fiscal-woes-central-bank-interventions.md) | +3.0% | +4.7% |
| SBM | 2024-08-30 | [Spot dollar closes higher for the 5th session despite interventions by the Central Bank \| Brasil 247](https://feedsoft.ai/events/29018-spot-dollar-closes-higher-for-the-5th-session-despite-interventions-by-the.md) | +3.0% | +4.7% |
| SBM | 2025-01-30 | [Brazil central bank hikes rates by 100 bps, confirms same in March](https://feedsoft.ai/events/26712-brazil-central-bank-hikes-rates-by-100-bps-confirms-same-in-march.md) | -0.5% | -4.8% |

## Sources

- reuters.com: https://www.reuters.com/article/markets/us/brazils-central-bank-slashes-2019-gdp-growth-forecast-sees-benign-inflation-idUSL2N23Y0CR/

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