Banker explaining interest rate to a client

Learn how the Selic rate affects your investments and loans, explained by a banker.

About this subject

The Selic rate is Brazil's benchmark interest rate, set by the Monetary Policy Committee (Copom) of the Central Bank. It directly influences interest rates on loans, financing, and the returns on financial investments such as savings accounts and government bonds. As of August 2024, the Selic rate stood at 10.50% per year, following a cycle of cuts that began in 2023. The rate serves as a tool for controlling inflation: when it rises, credit becomes more expensive and consumption slows down; when it falls, the economy is stimulated. The banker in the image illustrates the moment a professional explains to a client how the Selic affects their daily life, whether when taking out a mortgage or choosing a fixed-income investment. In Brazil, the Selic rate is a benchmark for the financial market and impacts everything from credit cards to public accounts.

Frequently Asked Questions

What is the Selic rate?

It is Brazil's benchmark interest rate, used by the Central Bank to control inflation and influence market interest rates.

How does the Selic rate affect my investments?

Fixed-income investments, such as CDBs and government bonds, often yield a percentage of the Selic. When the Selic rises, these investments tend to offer higher returns.

Does the Selic rate affect mortgages?

Yes, because banks use the Selic as a reference to set mortgage interest rates. A high Selic can make monthly payments more expensive.