◂ Event Timeline

Jul 1, 2024MACROBrazil

Brazil's central bank director says expansionary fiscal policy harms disinflation

Brazil's central bank director said expansionary fiscal policy undermines disinflation efforts. The comments came amid a sharp weakening of the real and rising interest rate futures.

WHY IT MATTERS

Persistent fiscal and monetary uncertainty keeps the real weak and raises local borrowing costs, which tends to push up the Brazilian-currency cost of imported feed inputs.

AFFECTSBrazilian Real (BRL per USD)▲

SOURCE
reuters.comJul 1, 2024

Price reaction & history

Brazilian Real (BRL per USD)▲bullishSO FAR1d +0.5%5d -1.8%20d +1.7%

After 301 past bullish macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.7%), and +1.0% over 20.

Aug 30, 2024Brazil Real Swings on Fiscal Woes, Central Bank Interventions-0.8%
Jun 27, 2019Brazil's central bank slashes 2019 GDP growth forecast, sees benign inflation+0.2%
Feb 19, 2019Latam FX weak, Brazil's real drops ahead of pension reform plans - Pension Policy International+1.4%
Jun 1, 2020Brazil cannot rely on foreign funding in short term, says central bank chief-8.7%
Jan 21, 2021Brazilian real drops as fiscal worries overshadow central bank optimism | Financial Post+1.5%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

Brazilian Real (BRL per USD) USDBRL · GP ▸

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