With the Selic rate held at 15% per year, the average bank interest rate in Brazil reached its highest level in eight years in November, reflecting the continued pressure of credit costs on businesses and consumers. This increase comes in a context where the Central Bank of Brazil (Copom) has maintained the Selic at its highest level since 2006 as part of its efforts to fight inflation and preserve economic stability — a move that was already anticipated by the markets.

The Selic rate, which serves as a benchmark for loans, financing, and other credit operations in the country, directly influences the interest rates charged by banks. With the Selic remaining high and stable, financial institutions pass on this cost to consumers and businesses, driving up average bank interest rates — even though in some segments, such as corporate credit, there may be small monthly fluctuations.

An example is the overdraft (cheque especial), which had an interest rate of 139.1% per year in October and rose to 141.7% per year in November.

This high-interest-rate environment directly impacts the cost of credit for households and businesses and may continue to fuel indebtedness and default, while the market looks ahead to a possible cycle of base rate cuts starting sometime in 2026.

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