Selic

Credit operations for companies and consumers became cheaper minutes after the Central Bank cut the base rate

After the Central Bank cut basic interest rates by one percentage point, the country's three largest banks announced reductions in lending rates. Businesses and consumers benefited from the reduction.

Customers of Banco do Brasil, Bradesco and Itaú will have lower interest rates on loans and financing, as a result of the fall in Selic. Another major financial institution, Santander cut its rates, but made the announcement  before the decision of the Central Bank.

On Wednesday (26), the Monetary Policy Committee (Copom), which gathers the board of the Central Bank, cut the Selic by one percentage point , from 10.25% a year to 9.25% a year, the lowest Level to the Selic since August 2013, when the Selic was at 9%.

Real Estate Credit

The BC decision immediately impacted on financial institutions, which reduced lending rates. At Banco do Brasil, the cut was the fifth in the year. For individuals, real estate credit operations will have lower rates under the Housing Financial System (SFH) and the Mortgage Portfolio (CH) modalities.

In the SFH, rates that were between 9.99% per year and 10.94% per annum will be reduced to 9.74% to 10.69% per annum. In the mortgage portfolio, rates were 10.90% to 11.99% per year and will be reduced to a range of 10.65% per year and 11.74% per year.

BB will also reduce minimum overdraft rates from 4.31% per month to 2.20% per month. At the CDC, the reduction was 1.97% per month to 1.79%. Banco do Brasil also announced a reduction for companies. The minimum rates for the PJ Business Gold Check and Fast Turnaround lines will be reduced and will go from 8.33% per month to 8.28%, while the maximum rates will fall from 13.50% per month to 13.45%.

Private banks

Also after the decision of the Central Bank, Bradesco said it will pass on the cut of a percentage point in the Selic to its clients. The institution, however, did not explain which lines will be adjusted, said only that companies and consumers will benefit.

Personal loan and overdraft fees have been reduced to consumers by  Itaú. For companies, the cuts were in working capital lines. The value of the new fees was not disclosed by the financial institution.