# Why Brazil's Post-Election Spending Delay Keeps Interest Rates High

> Brazil’s central bank held the Selic rate at 13.75% on November 4, pausing a sequence of five consecutive rate cuts. The bank cited rising inflation expectations and uncertainty about the fiscal outlook, as the government delayed presenting fiscal adjustment proposals until after Lula returned from an international trip.

- Date: 2026-11-08 · published 2026-11-09T00:09:26.696Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/88219-why-brazil-s-post-election-spending-delay-keeps-interest-rates-high
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Persistently high rates can weigh on credit and domestic demand, while fiscal uncertainty may keep pressure on the real. Currency weakness could raise the local cost of imported feed and fertilizer inputs.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2018-07-16 | [Brazil: Post-strike pre-election blues](https://feedsoft.ai/events/64232-brazil-post-strike-pre-election-blues.md) | -2.2% | -0.3% |
| USDBRL | 2024-07-31 | [Brazil holds interest rates as expected, flags 'greater caution'](https://feedsoft.ai/events/29477-brazil-holds-interest-rates-as-expected-flags-greater-caution.md) | -0.2% | -2.7% |
| USDBRL | 2024-11-12 | [Brazil’s real weakens, interest rates climb under Trump effect](https://feedsoft.ai/events/27618-brazil-s-real-weakens-interest-rates-climb-under-trump-effect.md) | -0.6% | +4.7% |
| USDBRL | 2018-05-22 | [brazil-currency-weakness-halts-the-interest-rate-cuts](https://feedsoft.ai/events/9714-brazil-currency-weakness-halts-the-interest-rate-cuts.md) | +0.5% | +0.6% |
| USDBRL | 2026-09-01 | [Election Angst Fuels Bruising Week in Brazil Markets](https://feedsoft.ai/events/18109-election-angst-fuels-bruising-week-in-brazil-markets.md) | -1.9% | +1.0% |

## Sources

- brznews.com: https://brznews.com/article/politics-why-brazil-s-post-election-spending-delay-keeps-interest-rates-high

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