Brazil lowers its key rate to 14% for the fourth consecutive month

WHAT HAPPENED

The central bank of Brazil lowered the Selic from 14.25% to 14%. This is the fourth consecutive cut: since 15%, the benchmark rate has accumulated a reduction of one point.

WHY IT MATTERS

The economy is losing strength: factories and consumption have cooled. A lower rate makes loans cheaper and can help first in construction, autos, and stores. But the projected inflation remains high: 5% this year, against the central bank's target.

AND FOR YOUR PORTFOLIO

For a person in Brazil, credit for a house, car, or installment purchase could ease a bit, although it will still be expensive. For investments exposed to Brazil, local stocks may receive support, while the real could lose value against the dollar.