Charts Of The Day: Credit Defies Slowdown

While other leading indicators are already bearing out our view that the Brazilian economy will slow in the second half of this year, credit growth has remain resolutely on the up, with the year-on-year rise in total loans averaging a robust 17.7% in the seven months to July. This suggests to us that, despite the monetary tightening that has seen interest rates rise to 10.75% from 8.75% in March, the expansionary credit policy that boosted domestic demand during the downturn remains firmly in place.

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