THE IMPACT OF INTEREST RATES ON THE FINANCIAL ROUTINE OF CITIZENS IN A SMALL TOWN IN PARANÁ

Abstract

The interest rate is one of the main instruments of monetary policy used by the Central Bank of Brazil to control inflation and ensure economic stability. The objective is to analyze how interest rates influence the behavior of citizens in a small city in Paraná. The research, of a quantitative and descriptive nature, is based on a literature review and the application of a structured questionnaire on a five-point Likert scale. Among the main results, 71% agree that the interest rate influences the price of products, and 60% believe that the government should adopt control measures during periods of high inflation, evidencing a broad perception of the role of monetary policy. On the other hand, 46% state that their salary does not cover basic expenses, revealing a direct impact of the economic situation on financial well-being. Furthermore, 72% agree that the interest rate is the main instrument of the Central Bank, and 70% perceive that high interest rates reduce household consumption, confirming the population's sensitivity to restrictive monetary policies. The results contribute to understanding the effects of monetary policy decisions and offer insights for reflections on public policies that balance inflation control and the stimulation of economic development of families.