Selic reduction makes public banks reduce their rates

base interest

Banco do Brasil and Caixa announce changes in payroll loans

The decision of the Monetary Policy Committee (Copom) to reduce the Selic rate, the economy’s basic interest rate, by 0.5 percentage points, motivated public banks to hasten to announce lower rates on payroll loans. The Copom announcement took place at the end of the afternoon of this Wednesday (2). Shortly afterwards, Caixa Econômica and Banco do Brasil issued press releases.

Caixa announced the reduction from 1.74% to from 1.70% per month in interest rates on Payroll Loans for beneficiaries and pensioners of the National Institute of Social Security (INSS). Banco do Brasil, in turn, reduced rates on payroll and automatic lines of credit, among others.

Like Caixa, BB reduced interest on INSS payroll loans. In this case, the rate fell from 1.81% per month to 1.77% per month, in the minimum range, and from 1.95% per month to 1.89% per month in the maximum range.

“The fall in interest rates in the country is supported by positive conditions, built throughout the first half of this year. They enable cheaper credit for households and businesses – especially MSEs [micro e pequenas empresas] – which allows us to envision perspectives of even greater dynamism of the economy, with more growth and job creation”,

said the president of Banco do Brasil, Taciana Medeiros.

Rita Serrano, president of Caixa, also expressed optimism with the scenario. “The measure contributes to the organization of the clients’ finances, together with the bank’s current debt negotiation actions, and to the growth of the country’s economy”.

In its decision, the Copom indicated that the Selic will continue to fall, supported by the reduction in inflation. According to a statement from the committee, its members foresee cuts of 0.5 points in the next meetings. The reduction announced today was the first in three years.

The last time the BC reduced the Selic rate was in August 2020, when the rate dropped from 2.25% to 2% per annum. After that, the Copom raised the Selic rate 12 consecutive times, in a cycle that began amid rising food, energy and fuel prices, and, as of August last year, maintained the rate at 13.75%. a year for seven consecutive times.

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