The forecast is that the Selic rate will remain high in 2023, so 2023 has everything to be the year of “fixed income”. See what the best investment.
With the high Selic rate, there is generally a higher profitability in fixed income investments.
This happens because the government uses Selic as a reference for the return on these investments.
Therefore, some of the best fixed income investments with a high Selic rate are:
- Tesouro Selic: is a public security issued by the federal government, whose profitability is linked to the Selic rate. It is considered a safe investment, as it is guaranteed by the National Treasury.
- CDBs (Bank Deposit Certificates): are securities issued by banks with the aim of raising funds. With the Selic rate rising, the profitability of these securities also increases.
- Letters of Credit (LCI/LCA): these are securities issued by banks with the aim of financing the real estate sector (LCI) or agribusiness (LCA). These securities are exempt from Income Tax for individuals and their profitability is also influenced by the Selic rate.
However, it is important to remember that the best investment for each person depends on their investor profile, financial objectives and investment horizon.
Therefore, it is important to always seek guidance from a qualified professional before making any investment decision.
What is the Selic rate?
The Selic rate is the basic interest rate of the Brazilian economy and is defined by the Central Bank of Brazil.
The government uses the Selic rate basically to control inflation and stimulate or discourage the country's economy.
When inflation is high, the Central Bank can increase the Selic rate to discourage consumption and investment, which reduces the amount of money in circulation in the economy.
This makes credit more expensive and discourages consumption, which helps control inflation.
On the other hand, when inflation is low or the economy is in recession, the Central Bank can reduce the Selic rate.
This maneuver is designed to stimulate the economy, which makes credit more accessible and encourages consumption and investment.
Inflation, in turn, is the widespread and persistent increase in the prices of goods and services in an economy over time.
What determines inflation?
The Broad Consumer Price Index (IPCA) is one of those that determines inflation.
In other words, the Central Bank uses the index as a reference to establish the country's inflation target.
In turn, the National Monetary Council sets the inflation target annually.
When inflation exceeds this range, the Central Bank needs to take measures to control it, such as raising the Selic rate, for example.
So, do you already have any investments? Tell us in the comments.
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