Brazilian families felt the weight of higher interest rates in August, according to Central Bank data. The average rate for individuals in free credit rose to 61,7% per year, an increase of 1,4 percentage point compared to July.
Main modalities affected
- Revolving credit card
- Installment card
These lines pushed the indicator up, while companies recorded a drop in the average rate, which stood at 24,2% per year.
Credit expansion despite costs
The balance of free operations for families reached R$ 2,6 trillion, with an increase of 0,8% in the month and 10,5% in 12 months. The growth was driven by vehicle financing, revolving card and private sector payroll loan.
The total balance of free credit in the financial system reached R$ 4,1 trillion, an expansion of 0,2% in the month.
Default and income commitment
The default rate for families reached 6%, with an advance of 0,2 percentage point in the month. Overall, the National Financial System recorded 5% of defaults.
Family indebtedness stood at 49,9% of income in July, while monthly debt commitment remained at 28,7%.
Total portfolio and expanded credit
The total credit balance of the financial system reached R$ 7,4 trillion in August, up 0,5% in the month. Operations with families totaled R$ 4,7 trillion.
Considering securities and external financing, expanded credit to the non-financial sector reached R$ 22 trillion, equivalent to 164,9% of GDP.
The monetary base ended the month stable at R$ 432,6 billion.