The Monetary Policy Committee (Copom) of the Central Bank of Brazil raised the Selic rate. This basic interest rate is the main tool of the Central Bank to control inflation in the country.

What is the Selic?

* The Selic is the basic interest rate of the Brazilian economy. It influences all other interest rates in the country, such as those for loans, financing, and investments.

* The Copom meets every 45 days to set the Selic target.

* When the Copom raises the Selic, the goal is to contain inflation, as higher interest rates tend to discourage consumption and investment.

Why does the Copom raise the Selic?

* The main reason for raising the Selic is to control inflation. When inflation is high, the Central Bank raises the Selic to make credit more expensive and reduce consumption.

* Additionally, the interest rate can also be used to attract foreign investments.

What are the effects of raising the Selic?

* More expensive credit: Higher interest rates make credit more expensive for businesses and consumers, which can discourage consumption and investment.

* Control of inflation: By reducing consumption and investment, raising the Selic helps control inflation.

* Impact on investments: The Selic influences the returns on various investments, such as government bonds.

To stay updated:

* Follow the news about Copom decisions and expert analyses on the impacts of the Selic on the economy.

* Check the website of the Central Bank of Brazil for official information about the Selic and the country's monetary policy.