The Brazilian Central Bank announces a 100 basis point interest rate hike！

According to Brazilian media reports, the Central Bank of Brazil decided on the afternoon of December 11 this year to raise the benchmark interest rate (Selic) by 1 percentage point, increasing it from 11.25% to 12.25%, in response to the growing inflation challenges and fiscal difficulties.

This round of interest rate hikes may further increase the financing costs for domestic beef producers in Brazil, which could lead to higher production costs for beef. As a result, the export prices of Brazilian beef may be affected, potentially causing an increase in prices for exports to China.

According to data, last week the export price of Brazilian beef reached 3.61 USD per kilogram, a 3.2% decrease compared to the previous week, ending a consecutive 15-week upward trend.

If the Brazilian Central Bank continues to significantly raise the benchmark interest rate, Brazilian beef export prices may come under pressure and increase.