# 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.

- Date: 2024-07-01 · published 2024-07-01T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/9452-brazil-s-central-bank-director-says-expansionary-fiscal-policy-harms
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## 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.

## Read by commodity

- 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 | 2019-06-27 | [Brazil's central bank slashes 2019 GDP growth forecast, sees benign inflation](https://feedsoft.ai/events/58795-brazil-s-central-bank-slashes-2019-gdp-growth-forecast-sees-benign-inflation.md) | +0.2% | -1.2% |
| USDBRL | 2019-02-19 | [Latam FX weak, Brazil's real drops ahead of pension reform plans - Pension Policy International](https://feedsoft.ai/events/60781-latam-fx-weak-brazil-s-real-drops-ahead-of-pension-reform-plans-pension-policy.md) | +1.4% | +1.5% |
| 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 | 2021-01-21 | [Brazilian real drops as fiscal worries overshadow central bank optimism \| Financial Post](https://feedsoft.ai/events/49385-brazilian-real-drops-as-fiscal-worries-overshadow-central-bank-optimism.md) | +1.5% | +2.0% |

## Sources

- reuters.com: https://www.reuters.com/markets/brazils-central-bank-director-says-expansionary-fiscal-policy-harms-disinflation-2024-07-01/

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