# Uncertainty over Trump leads to reevaluation of rate cuts in Brazil - BNamericas

> Brazil's central bank Copom is expected to cut the Selic rate by 0.25 percentage points at its November meeting, according to Banco Safra chief economist Carlos Kawall. Kawall said he does not expect a larger 0.5-point cut that many analysts had predicted, citing caution after Donald Trump's election win. He also noted that 10-year US Treasury yields have risen above 2%.

- Date: 2016-11-11 · published 2016-11-11T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/74027-uncertainty-over-trump-leads-to-reevaluation-of-rate-cuts-in-brazil-bnamericas
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger dollar and higher Brazilian risk premium weaken the real, which raises import costs and inflation expectations for Brazil and can make Brazilian soybean and corn exports more competitive in dollar terms. A smaller rate cut keeps domestic financing tighter, which can weigh on local demand for feed.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2018-05-15 | [Brazil's real continues its slump amid election uncertainty \| AP News](https://feedsoft.ai/events/65228-brazil-s-real-continues-its-slump-amid-election-uncertainty-ap-news.md) | +2.4% | +1.5% |
| USDBRL | 2024-07-29 | [Economic uncertainties still prevent rate cut in Brazil, official says \| Reuters](https://feedsoft.ai/events/29478-economic-uncertainties-still-prevent-rate-cut-in-brazil-official-says-reuters.md) | +1.4% | -2.6% |
| 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 | 2023-07-25 | [Brazil 50 basis-point rate cut comes into play as inflation edges lower](https://feedsoft.ai/events/35239-brazil-50-basis-point-rate-cut-comes-into-play-as-inflation-edges-lower.md) | +0.2% | +5.4% |
| DXY | 2016-11-09 | [Brazil takes a hit as Trump elected US president - BNamericas](https://feedsoft.ai/events/5469-brazil-takes-a-hit-as-trump-elected-us-president-bnamericas.md) | +3.1% | +3.3% |
| DXY | 2021-06-29 | [Fed alterations increase uncertainty](https://feedsoft.ai/events/46904-fed-alterations-increase-uncertainty.md) | +0.8% | +1.1% |
| DXY | 2024-11-06 | [Why inflation could rise and interest rates remain elevated under a Trump presidency \| CNN Business](https://feedsoft.ai/events/27338-why-inflation-could-rise-and-interest-rates-remain-elevated-under-a-trump.md) | +1.9% | +1.5% |

## Sources

- bnamericas.com: https://www.bnamericas.com/en/news/uncertainty-over-trump-leads-to-reevaluation-of-rate-cuts-in-brazil

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