In one year, the Selic interest rate goes from 2% to 9.25%

The Selic interest rate is the monetary policy interest rate used by the Brazil Central Bank (BCB). In 2021, that tool went from 2% in february to 9.25% in november after the last reunion of Copom, the BCB's Monetary Policy Committee. 

At the last Copom meeting, held yesterday, the Selic rate rose from 7.75% to 9.25%, up 1.5 percentage points. According to analysts, this more hawkish tone by the Copom is an attempt to prevent runaway inflation. 

Which indicates that interest rates in Brazil will stay high for longer. The expectation is that inflation will only start to decelerate around the second quarter of 2022, but not even this is guaranteed given the numerous crises that President Bolsonaro and his government produce weekly.

The feeling of insecurity generated by the government greatly affects the forecasts of investors and the market in general.

With that, the next government should receive a country pressured by the basic interest rates of the economy and with the risk of greater lack of control in the public debt, which is already high.