Last month, the total credit provided in Brazil increased by 0.8%, reaching 48.5% of GDP, or BR$1.946 trillion. In September, the growth rate was 2 percent.
The slowdown in credit occurs at a time when the Central Bank (CB) had just reduced the benchmark interest rate by 1% to 11.5%.
The slower credit growth rates were influenced, according to the CB, by the bank strike that “partially restricted access to banking services, affecting mainly the credit to individuals, in particular personal credit and payroll.”
Central Bank Data released today also showed that the default for individuals stood at 7.1% in October, up 0.1% compared to September. For business, delinquency rates rose by 0.2% to 4%.
The real interest rates (not the Selic) rose 0.5% to 39.5%. For individuals, the market interest rate reached 47%, the highest since May 2009, and for companies it fell 0.2% to 29.8%.