Brazil lowers its interest rate to 13.75% from 14%

WHAT HAPPENED

The Central Bank of Brazil lowered its key rate, the Selic, from 14% to 13.75%. The decision was unanimous because the economy cooled, inflation eased, and fewer jobs are being created.

WHY IT MATTERS

A lower rate gradually reduces the cost of loans. This can help construction, housing, cars, and consumption, just when the economy fell by 0.2% last month. The market expects another cut to 13.5% by December.

AND FOR YOUR PORTFOLIO

For your wallet, loans tied to the Selic may charge less interest: for every 100 lent per year, it would be 13.75 reais instead of 14. In Brazilian investments, rates and the value of the real can change the outcomes.