2023-12-14 12:51:13
The Selic rate today is 11.75%defined at the last Copom meeting of 2023, held on December 12th and 13th.
For those who invest, knowing the value of Selic rate today It is essential, as it is a reference for all interest rates in Brazil, which includes the remuneration of many investments.
Fixed income, for example, is especially impacted, because the CDI, the main indicator for this type of investment, follows the Selic rate very closely.
In this article, you will better understand the importance of monitoring the Selic rate in the world of investments. Follow along!
What is the value of the Selic rate today?
The Selic rate today is 11.75%. This Selic value has been in effect since December 13, 2023.
Previously, the rate was 12.25%.
How does the Selic rate work?
Now that you know the value of the Selic rate today, it might be worth taking a few steps back to remember why the Selic rate is so relevant in the world of investments.
To do this, we need to explain that, as it is the economy’s basic interest rate, the Selic is the Central Bank’s main instrument for controlling inflation.
The logic is simple to understand:
- When a Selic rate rises, interest rates rise. Thus, financing and access to credit become more expensive, which discourages consumption. As a consequence, there is a reduction in prices, or a decrease in the rise of these prices — in other words: inflation falls.
- When a Selic rate falls, interest rates fall. Thus, financing and access to credit become cheaper, which stimulates consumption. With more people and companies consuming, prices rise, driving up inflation.
Easy to understand, right?
For the economy to continue growing, the ideal would be to maintain a basic interest rate at low levels, stimulating investment and consumption. But this needs to be done so that inflation does not get out of control, because it reduces Brazilians’ purchasing power.
Ensuring this balance is, in simplified terms, the great role of Central Bank monetary policy.
READ ALSO | The Selic rate and inflation: we explain everything you need to know
Why monitor the value of the Selic rate today?
If you invest, knowing the value of the Selic rate today is essential for making your investment decisions — if you make them on your own.
As the CDI, the main reference for fixed income, closely follows the Selic, an increase in the Selic rate means an increase in fixed income yields.
Note that here we are only speaking in nominal terms, without considering inflation.
This increase can make investment in fixed income more advantageous, for example. Just as a reduction in the Selic rate can encourage investment in variable income.
This is because, with fixed income paying little, investors are forced to take risk on variable income to obtain more interesting returns.
In this article, we explain why knowing the value of Selic rate today is relevant to your investments.
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