# Latam central banks look past COVID as inflation phantoms loom

> Latin American central banks are reported to be looking past COVID-19 as inflation risks build. Brazil's real fell nearly 8% in the first quarter of 2021, then rebounded to be the top performer in the second quarter with a gain of more than 13%.

- Date: 2021-07-02 · published 2021-07-02T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/9905-latam-central-banks-look-past-covid-as-inflation-phantoms-loom
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Tighter Brazilian monetary policy and a firmer real tend to lower the cost of imported inputs, which can ease pressure on feed-ingredient prices priced in dollars.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2023-09-26 | [Brazil inflation accelerates as cenbank reiterates rate cut pace](https://feedsoft.ai/events/34321-brazil-inflation-accelerates-as-cenbank-reiterates-rate-cut-pace.md) | +2.3% | +0.7% |
| 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 | 2020-03-09 | [Brazil central bank to continue FX intervention as long as it takes to calm market \| Financial Post](https://feedsoft.ai/events/6408-brazil-central-bank-to-continue-fx-intervention-as-long-as-it-takes-to-calm.md) | +2.7% | +14.6% |
| USDBRL | 2021-12-15 | [Latam FX drops on rising U.S. interest rate risk \| Central bank \| NDA News UK](https://feedsoft.ai/events/43877-latam-fx-drops-on-rising-u-s-interest-rate-risk-central-bank-nda-news-uk.md) | +1.3% | -2.8% |
| USDBRL | 2021-09-14 | [Latam FX falls as U.S. inflation optimism fizzles out \| Financial Post](https://feedsoft.ai/events/45291-latam-fx-falls-as-u-s-inflation-optimism-fizzles-out-financial-post.md) | +2.3% | +6.2% |

## Sources

- reuters.com: https://www.reuters.com/world/americas/latam-central-banks-look-past-covid-inflation-phantoms-loom-2021-07-02/

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