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5d ago

Brazil Credit Stock Grows to R$6.97 Trillion as Interest Rates Climb Again

The Central Bank raised its 2025–26 credit growth outlook even as consumer borrowing costs surged to 59.4% a year and revolving card rates hit 440.5%.

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Overview

  • Total credit rose 0.9% in November to R$6.972 trillion, with lending to households up 1.2% and to companies up 0.3%, according to the Central Bank.
  • The average system-wide rate edged up to 31.9% per year, while credit with free funds reached 46.7% and overdraft charges climbed to 141.7%.
  • Delinquency remained high but stable at 3.8% for total credit and 5.0% for free‑credit operations in November.
  • Household debt reached 49.3% of annual income in October as the monthly debt-service burden rose to 29.4%, signaling ongoing pressure on family finances.
  • New lending showed fatigue as free‑credit concessions fell 5.6% on the month to R$575 billion, and bank spreads widened to 33.2 points in free credit and 20.9 points overall.