High Selic: What does it mean?
The expression “high selic” refers to the basic interest rate of the Brazilian economy, known as the Special Settlement and Custody System (Selic). When it comes to “High Selic”, it means that this rate is at a high level.
What is Selic?
Selic is a interest rate defined by the Central Bank of Brazil Monetary Policy Committee (COPOM). It serves as a reference for other interest rates practiced in the country, directly influencing the cost of credit, investment income and inflation.
How does Selic Alta works?
When Selic is high, it means that the Central Bank is increasing the interest rate to control inflation. This is because higher interest rates discourage consumption and encourage savings, reducing the demand for products and services and, consequently, inflationary pressure.
With the high Selic, loans and financing become more expensive, which can slow down the economy, but also reduce inflation. On the other hand, fixed income investments such as government securities and CDBs tend to offer more attractive returns.
How to do and practice the Alta Selic?
High Selic is not something that can be done or practiced individually. It is determined by the Central Bank, based on analysis and economic projections. However, as an investor, it is possible to take advantage of Selic Alta to seek better income in fixed income financial investments.
where to find information about Selic Alta?
Information about Selic Alta can be found on Central Bank websites, economic news, reports from financial institutions and market analysis.
- Central Bank of Brazil
- Financial institutions
- Expert analysis
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