central bank

Credit operations for companies and consumers receded last month. Selic fall is decisive for reducing rates

Influenced by continued falls in the basic interest rate, loans and financing have become cheaper for consumers and companies in Brazil. Central Bank data, released on Thursday (27), show that average interest rates fell 1.2 percentage points from May to June, from 47.3% a year to 46.1% in the period.

The expectation is that this downward movement will continue in the coming months. In July, it is possible that credit operations will once again see further declines in rates. Last Wednesday (26), the Monetary Policy Committee (Copom), formed by the Central Bank's board, cut the Selic interest rate by another 1 percentage point, to 9.25% a year - the lowest Level since August 2013.

When the Central Bank adjusts the Selic, the first effects can be observed in financial institutions. Minutes after the bankruptcy announcement, Brazil's three largest banks announced reductions in credit lines : Banco do Brasil, Itaú and Bradesco reported that they will reduce the rates of operations for families and companies.

Fall of rates in the year

Yesterday's cut was the seventh in a row. All this movement of the Central Bank has knocked down the rates charged by banks in credit operations. From the beginning of the year through June, average interest rates fell 6.1 percentage points. For consumers, the drop was 9.1 percentage points in the half year; For companies, the decline was 3.3 percentage points.

Source: Portal Brasil, with information from the Central Bank