Brazil’s consumer-loan default rate fell in June, as the central bank loosens reserve requirements to ease credit conditions in the world’s second-largest emerging market.
The consumer default rate fell to 6.5 percent from 6.7 percent in May, the central bank said in a report distributed today in Brasilia.
Bank lending rose 0.9 percent to 2.8 trillion reais ($1.3 trillion) from the previous month after climbing a revised 0.9 percent in May, and 11.8 percent from a year ago.
President Dilma Rousseff’s administration has turned to bank lending to revive an economy that is forecast to grow at the slowest pace since the recession in 2009.
Finance Minister Guido Mantega said last month that retail is being hurt by a lack of credit for consumption. Even after annual inflation surpassed the top of its target range, the central bank last week said it would free up 45 billion reais ($20.2 billion) for lending in efforts to distribute liquidity.
Swap rates on the contract due in January 2017, the most traded in Sao Paulo today, rose six basis points, or 0.06 percentage point, to 11.33 percent at 10:47 local time. The real weakened by 0.2 percent to 2.2276 per U.S. dollar.
The central bank on July 25 said it will make available new credit through changes in deposit requirements and the risk calculation for payroll and auto loans. Those measures do not alter the institution’s inflation outlook, the bank said.
Compulsory Reserves
The bank cited a more than doubling in compulsory reserves to 405 billion reais since 2009, a recent moderation in lending, low default levels and reduced risk in the financial system for taking the measures to “better distribute liquidity in the economy,” according to its statement.
The bank’s strategy does not contemplate a relaxation of monetary policy as inflation remains resistant, policy makers said the day before in the minutes to their July 15-16 meeting.
The central bank kept the benchmark Selic unchanged at 11 percent for the second straight gathering after raising it 375 basis points in the year through April.
The average interest charged on loans was 32 percent in June, unchanged from May, while corporate financing costs fell to 22.6 percent from 23 percent in May, the central bank said.
The average rate on consumer loans rose to 43 percent from 42.5 percent. Latin America’s largest economy will expand 0.90 percent this year as annual inflation reaches 6.41 percent, according to a central bank survey of about 100 analysts published yesterday.
That compares with the central bank’s forecast of 1.6 percent growth 6.4 percent inflation, which assumes a key rate at 11 percent. Brazil’s central bank targets annual inflation at 4.5 percent, plus or minus two percentage points.
bloomberg.com
The consumer default rate fell to 6.5 percent from 6.7 percent in May, the central bank said in a report distributed today in Brasilia.
Bank lending rose 0.9 percent to 2.8 trillion reais ($1.3 trillion) from the previous month after climbing a revised 0.9 percent in May, and 11.8 percent from a year ago.
President Dilma Rousseff’s administration has turned to bank lending to revive an economy that is forecast to grow at the slowest pace since the recession in 2009.
Finance Minister Guido Mantega said last month that retail is being hurt by a lack of credit for consumption. Even after annual inflation surpassed the top of its target range, the central bank last week said it would free up 45 billion reais ($20.2 billion) for lending in efforts to distribute liquidity.
Swap rates on the contract due in January 2017, the most traded in Sao Paulo today, rose six basis points, or 0.06 percentage point, to 11.33 percent at 10:47 local time. The real weakened by 0.2 percent to 2.2276 per U.S. dollar.
The central bank on July 25 said it will make available new credit through changes in deposit requirements and the risk calculation for payroll and auto loans. Those measures do not alter the institution’s inflation outlook, the bank said.
Compulsory Reserves
The bank cited a more than doubling in compulsory reserves to 405 billion reais since 2009, a recent moderation in lending, low default levels and reduced risk in the financial system for taking the measures to “better distribute liquidity in the economy,” according to its statement.
The bank’s strategy does not contemplate a relaxation of monetary policy as inflation remains resistant, policy makers said the day before in the minutes to their July 15-16 meeting.
The central bank kept the benchmark Selic unchanged at 11 percent for the second straight gathering after raising it 375 basis points in the year through April.
The average interest charged on loans was 32 percent in June, unchanged from May, while corporate financing costs fell to 22.6 percent from 23 percent in May, the central bank said.
The average rate on consumer loans rose to 43 percent from 42.5 percent. Latin America’s largest economy will expand 0.90 percent this year as annual inflation reaches 6.41 percent, according to a central bank survey of about 100 analysts published yesterday.
That compares with the central bank’s forecast of 1.6 percent growth 6.4 percent inflation, which assumes a key rate at 11 percent. Brazil’s central bank targets annual inflation at 4.5 percent, plus or minus two percentage points.
bloomberg.com
No comments:
Post a Comment