How Selic affects everything in your life Selic is the basic interest rate for the Brazilian economy. The acronym stands for “Special Settlement and Custody System”, but, in practice, it represents the interest charged between banks and serves as a reference for various fees applied to the consumer. This Wednesday (5), the Monetary Policy Committee (Copom) of the Central Bank (BC) decided to reduce the rate by 0.25 percentage points, taking the Selic from 14.25% to 14% per year, the fourth consecutive cut. When the Selic rises, credit becomes more expensive. This reduces loans, investments and hiring, cools consumption and helps contain inflation. When it falls, credit becomes cheaper and stimulates investment, hiring and consumption. In this video, you will understand how Selic affects your life — and sometimes you don't even realize it. Every week, g1 Explains simplifies the economy, the financial market and financial education, showing how all of this affects your pocket.