# Brazilian central bank likely to cut key rate by 100 bps, says Commerzbank | EconoTimes

> Analysts polled by Commerzbank expect the Brazilian central bank to cut its key rate by 100 basis points, with some forecasting 125 basis points. The bank has cut rates from 14.25% to 12.25% since October 2016, while real rates remain near 7%. Falling inflation, weak GDP and a stable currency are cited as reasons for the cuts.

- Date: 2017-04-12 · published 2017-04-12T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/71708-brazilian-central-bank-likely-to-cut-key-rate-by-100-bps-says-commerzbank
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Lower interest rates reduce the carry advantage of holding reais, which can weaken the currency and make Brazilian exports cheaper, while also signaling a weaker domestic economy.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2026-06-30 | [Brazilian Real: Rising rates signal currency risk – Commerzbank](https://feedsoft.ai/events/19017-brazilian-real-rising-rates-signal-currency-risk-commerzbank.md) | -0.6% | -1.3% |
| USDBRL | 2022-06-14 | [Analysis: Exchange rate unlikely to mean trouble for Brazil’s Central Bank](https://feedsoft.ai/events/11313-analysis-exchange-rate-unlikely-to-mean-trouble-for-brazil-s-central-bank.md) | +0.7% | +5.4% |
| USDBRL | 2023-06-27 | [Brazil central bank minutes raise possibility of August rate cut \| Reuters](https://feedsoft.ai/events/35693-brazil-central-bank-minutes-raise-possibility-of-august-rate-cut-reuters.md) | +0.4% | -0.5% |
| USDBRL | 2023-05-24 | [Lula’s Feud with Brazil’s Central Bank Raises Rates Dilemma to Global Stage](https://feedsoft.ai/events/36147-lula-s-feud-with-brazil-s-central-bank-raises-rates-dilemma-to-global-stage.md) | +3.1% | -3.6% |
| USDBRL | 2019-10-30 | [Brazil: BCB to cut rates by 50bps – TDS — Octa](https://feedsoft.ai/events/56777-brazil-bcb-to-cut-rates-by-50bps-tds-octa.md) | -0.1% | +6.6% |

## Sources

- econotimes.com: https://econotimes.com/Brazilian-central-bank-likely-to-cut-key-rate-by-100-bps-says-Commerzbank-639450

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