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Home / News / Central Bank reduces interest rate to 11,75% and indicates new cuts

Central Bank reduces interest rate to 11,75% and indicates new cuts

This was the fourth consecutive drop in the Selic, being the lowest level recorded since March 2022
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  • Photo by Henrique Hein Henrique Hein
  • December 14, 2023, at 09:36 AM
1 min 36 sec read
Central Bank reduces interest rate to 11,75% and indicates new cuts
Headquarters building of the Central Bank of Brazil. Photo: EBC

The Copom (Monetary Policy Committee) of the central bank reduced this Wednesday (13) the basic interest rate of the economy in half a percentage point, taking Selic from 12,25% to 11,75% per year. 

This is fourth consecutive fall in basic interest, with the lowest level already registered since March 2022. The reduction was already expected by the financial market and was decided unanimously among the representatives of the collegiate. 

A financial authority justified the new cut by the improvement in the international scenario, mainly the cooling of interest rates in U.S.

This was the last Copom meeting this year. The collegiate will meet again on January 30th and 31st, 2024, with expectation that the pace of Selic cuts will continue throughout next year, if the current scenario continues.

According to data from the Focus bulletin, released by the Central Bank this Monday (11), the basic interest rate in Brazil it should reach 9,25% in December 2024.

Financing

Although the price of photovoltaic kits be cheaper than ever, in Brazil the financing still remains the most viable solution so that the majority of consumers have access to solar energy in their homes, businesses and the like. 

In this sense, the reduction in the basic interest rate has a significant impact on the sale of solar energy systems, since opens room for negotiation with customers and prevents banks and/or lenders from restricting access to credit for those interested in technology, such as happened in the first half of this year.


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Central Bank of Brazil Cup solar energy Financing Interest interest rate Selic rate
Photo by Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.
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