# brazil-currency-weakness-halts-the-interest-rate-cuts

> Brazil's central bank kept the Selic rate at 6.50% at its 16 May meeting, ending a run of twelve consecutive cuts, against consensus expectations of a 25 bps cut. The decision followed a sharp 12% fall in the real against the dollar since March, which shifted the balance of risks toward higher inflation. The bank signaled the rate would be held steady, marking the end of the easing cycle.

- Date: 2018-05-22 · published 2018-05-22T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/9714-brazil-currency-weakness-halts-the-interest-rate-cuts
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A halt to rate cuts and a weaker real raise Brazil's domestic inflation risk and make Brazilian export origin cheaper in dollar terms, which weighs on world feed prices. Higher domestic borrowing costs could also slow Brazilian livestock and feed-using sectors.

## Read by commodity

- 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 | 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 | 2017-09-05 | [Brazil: Rate cuts to continue](https://feedsoft.ai/events/69154-brazil-rate-cuts-to-continue.md) | -1.3% | +0.9% |
| USDBRL | 2024-12-19 | [Why Brazil’s currency is plunging](https://feedsoft.ai/events/27149-why-brazil-s-currency-is-plunging.md) | -0.5% | -2.5% |
| USDBRL | 2020-03-16 | [Brazil: Stocks dive, currency closes at new record low - The Business Times](https://feedsoft.ai/events/11020-brazil-stocks-dive-currency-closes-at-new-record-low-the-business-times.md) | +5.0% | +7.2% |

## Sources

- latribune.lazardfreresgestion.fr: https://latribune.lazardfreresgestion.fr/en/brazil-currency-weakness-halts-the-interest-rate-cuts/

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