The Monetary Policy Committee (Copom) of the Central Bank (BC) reduced the Selic Rate by 0.25 percentage points this Wednesday (17), which will go from 14.50% to 14.25% per year. This is the third consecutive time that the committee has reduced interest rates. Related news: Entities in the productive sector demand larger cuts in the Selic. The BC uses Selic, the economy's basic interest rate, as an instrument to reduce the pace of economic activity and, therefore, try to control inflation. When interest rates rise or stay high for a long time, credit becomes more expensive, becoming more expensive for those who buy on cards, in installments of products and in property financing, leading to a loss of strength in consumption. When there is a reduction, the prospect is of stimulus for the economy and a lower risk of uncontrolled prices. At the previous meeting, in April, the committee pointed out as justification for a slower rate of interest rate declines the uncertainties surrounding the development of geopolitical conflicts in the Middle East and expectations for rising inflation for a longer period. From June 2025 to March this year, the Selic remained at 15% per year, the highest level in almost 20 years. The Copom began cutting interest rates in March, in a scenario of falling inflation. However, the war in the Middle East, which was reflected in the increase in fuel and food prices, makes it difficult for the rate to fall.