Bad news for those who usually resort to credit and loans to close the accounts: the Central Bank raised once again the basic interest rate, the Selic. Now, interest rates are at 14.25% a year, 0.5 pp more than the previous one. This is the highest interest rate since August 2006.

Rising interest rates is the government’s main weapon to control inflation, which is already close to 9% in 12 months, according to IBGE. The role of the Central Bank is to try to put inflation at 4.5% target.

The good news is that this should be the last high of the year. In the statement released late Wednesday (July 29), the Copom (Committee that decides on the Copom) made it clear that this should be the last increase of the year.

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