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Brazil’s credit set to grow at faster pace than expected
28/09/2011
Brazil’s central bank has said that the country’s credit will grow at a faster rate than previously anticipated.
The statement came after the biggest jump of the year in lending in August, with a rise of 1.7 per cent. This equated to an increase in bank lending of 1.89 trillion reais in August, up from 1.86 trillion reais in July. The increase represented the largest jump since November 2010.
The report from the central bank also revealed that total credit was up 19 per cent on last year, mainly owing to mortgages and business lending. The figures show that mortgage lending rose 3.7 per cent in August and was up 49.3 per cent on the same time last year.
Flavio Serrano, senior economist at Espirito Santo Investment Bank in Sao Paulo, told Businessweek: “We’re seeing the economy still going strong and that the impact from the crisis may be less than we thought. Demand for credit is being sustained by a strong jobs market.”
Tulio Maciel, head of the central bank’s economic research department, told reporters that he expects bank lending to grow 17 per cent this year. This was up on the 15 per cent credit growth he had been hoping for.
The statement came after the biggest jump of the year in lending in August, with a rise of 1.7 per cent. This equated to an increase in bank lending of 1.89 trillion reais in August, up from 1.86 trillion reais in July. The increase represented the largest jump since November 2010.
The report from the central bank also revealed that total credit was up 19 per cent on last year, mainly owing to mortgages and business lending. The figures show that mortgage lending rose 3.7 per cent in August and was up 49.3 per cent on the same time last year.
Flavio Serrano, senior economist at Espirito Santo Investment Bank in Sao Paulo, told Businessweek: “We’re seeing the economy still going strong and that the impact from the crisis may be less than we thought. Demand for credit is being sustained by a strong jobs market.”
Tulio Maciel, head of the central bank’s economic research department, told reporters that he expects bank lending to grow 17 per cent this year. This was up on the 15 per cent credit growth he had been hoping for.
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