Brazil’s share of federal debt linked to the Selic, the benchmark interest rate, rose to 52.7% in August from 51.1% in July, extending deterioration in the debt profile. The increase followed the Treasury’s decision to raise its 2026 ceiling for floating-rate debt to 53%. Although Brazil began an easing cycle in March, the Selic remained at 13.75%, among the highest real interest rates globally. Federal public debt increased 0.04% from July to 9.293 trillion reais ($1.78 trillion), driven by 88.4 billion reais in interest costs; the government issued 211.6 billion reais in bonds against 296.1 billion reais in maturities, resulting in net debt redemption. Separately, central-bank data showed financial-sector loans rose 0.5% from July to R$7.4 trillion in August 2026, as household borrowing increased and corporate lending declined. Total credit growth eased to 9.2% year-on-year from 9.3% in July.