The Selic is the basic interest rate of the economy. It is the main monetary policy instrument used by the Central Bank (BC) to control inflation. It influences all interest rates in the country, such as interest rates on loans, financing, and financial investments. The Selic rate refers to the interest rate observed in one-day lending operations between financial institutions that use federal government securities as collateral. The BC operates in the market for government securities so that the effective Selic rate is in line with the Selic target set at the meeting of the BC's Monetary Policy Committee (Copom).