Brazil’s Selic cut to 13.25%: Corporate interest rates remain at 20% despite central bank move

The Central Bank has cut the Selic, Brazil's key interest rate, to 13.25% annually after almost a year without changes.

Despite this reduction, corporate loans are likely to continue to have interest rates around 20%.

According to the monetary and credit statistics released by the authority for June 2023, the average interest rate for legal entities was 23.1% per annum.

For individuals, it was even higher at 59.1%.

Special checks (133.6% p.a.) and credit cards (104.2% p.a.) have rates significantly higher than the average for businesses.

Banks lend money to businesses at. . .