The Brazilian government has decided not to reduce interest rates for the Minha Casa, Minha Vida (MCMV) housing program, even as there are signs that the central bank might lower the Selic rate in the near future. Minister of Cities, Jáder Filho, confirmed this stance during a news event, stating that the current financing rates for MCMV are already at historic lows. He emphasized that the interest rates for the lowest income families, those earning up to R$ 2,850, stand at 4% per year in the northern and northeastern regions, and slightly higher in other regions at 4.25%.

The minister’s comments come as the Selic rate, which serves as the benchmark for interest rates in Brazil, remains at 15%, the highest level seen in nearly two decades. By maintaining the current interest rates for the MCMV program, the government aims to address the housing needs of Brazilian families without further reductions that could potentially destabilize the program's finances. The minister argued that existing rates are effectively meeting the demands of the Brazilian populace for housing finance.

This decision reflects the government’s broader strategy concerning economic policies and public welfare. By keeping rates stable, the government is signaling confidence in their approach to managing the balance between supporting affordable housing and controlling inflation. As Brazil continues to adapt to economic pressures, this stance on the MCMV’s interest rates will play a crucial role in shaping housing access for low-income families in the country, indicating an ongoing emphasis on long-term sustainability over short-term adjustments.