The average interest rate on non-earmarked credit increased by 8.2 percentage points in the last 12 months and reached 43.5% per year in January. In the month, the increase was 1.8 percentage points, according to Monetary and Credit Statistics, released today (27) by the Central Bank (BC).
In new hires for companies, the average credit rate reached 25.3% per year, up 2.2 percentage points in the month and 4 percentage points in 12 months. In contracts with families, the average interest rate reached 56.6% per annum, an increase of 1.2 percentage points in the month and 10.3 percentage points in 12 months.
In free credit, banks have the autonomy to lend money raised in the market and define the interest rates charged to customers. Directed credit, which has rules defined by the government, is basically intended for the housing, rural, infrastructure and microcredit sectors.
In the case of earmarked credit, the rate for individuals was 11.4% per annum in January, stable in relation to the previous month and up 2.1 percentage points in 12 months. For companies, the rate rose 1.5 percentage points in the month and 2.5 percentage points in 12 months, going to 13.5% per year. Thus, the average rate on earmarked credit reached 11.9% per year, up 0.3 percentage points in the month and 2.2 percentage points in 12 months.
The increase in average bank interest rates occurs at a time when the economy’s basic interest rate, the Selic, is at its highest level since January 2017, at 13.75% per year, defined by the Monetary Policy Committee (Copom) . In March of last year, the Central Bank began a cycle of monetary tightening, amid rising food, energy and fuel prices.
The Selic is the main instrument used by the Central Bank to reach the inflation target. In January, driven mainly by the increase in food and fuel prices, the Extended National Consumer Price Index (IPCA), considered official inflation in the country, stood at 0.53%, according to the Brazilian Institute of Geography and Statistics (IBGE). With the result, the IPCA accumulates a high of 5.77% in 12 months.
The BC assesses that the increase in the Selic has been passed on to the final rates of different types of credit, but the Copom does not rule out the possibility of further increases if inflation does not fall as expected. The raising of the basic rate helps to control inflation because it affects prices, since higher interest rates make credit more expensive and stimulate savings, containing heated demand.
credit card
For individuals, the month’s highlight was credit cards, whose rates increased by 2 percentage points in the month and 27.3 percentage points in 12 months, reaching 94.9% per year.
In revolving credit, which is the one taken by the consumer when he pays less than the full amount of the card invoice and lasts 30 days, there was an increase of 3.8 percentage points in December to January and an increase of 65.2 percentage points in 12 months , going to 411.5% per annum. After 30 days, financial institutions pay the debt in installments. In the case of the installment card, interest rates rose 2.5 percentage points in the month and 9.6 percentage points in 12 months, to 182.1% per annum.
The payroll loan rate changed by 0.2 percentage points in the month and 3.6 percentage points in 12 months (26.7%). In the case of non-payroll personal loans, interest rates rose 2.4 percentage points in January and 4.5 percentage points in 12 months (84.3% per year).
As for overdraft facilities, there was a negative variation of 0.1 percentage points in the month, with an increase of 6.3 percentage points in 12 months, going to 132% per year.
Increase in hiring
With the maintenance of high interest rates, in January, the stock of all loans granted by the banks of the National Financial System (SFN) was R$ 5.317 trillion, with a negative variation of 0.3% in relation to December. The result reflected the reduction of 2.4% in the balance of credit operations agreed with legal entities (R$ 2.094 trillion) and the increase of 1.1% in that of individuals (R$ 3.223 trillion).
In the interannual comparison, total credit grew 13.6% in January, showing a slowdown compared to 14% in 2022. On the same basis of comparison, the balance with companies slowed down to 7.9%, compared to 9% in January 2022. On the other hand, the volume of credit to households grew 17.8% in the twelve months through January, compared to 17.7% in December of the previous year.
Extended credit to the non-financial sector, which is credit available to companies, families and governments regardless of the source (banking, bond market or external debt) reached R$ 14.646 trillion, reducing 1.3% in the month, mainly due to the reduction of public debt securities, which fell by 3.3%. In the interannual comparison, expanded credit grew 8.2%, with emphasis on increases in the Financial System loan portfolio, 13.9%, and debt securities, 8.1%.
indebtedness
According to BC, default (considering arrears over 90 days) has remained stable for a long time, with small fluctuations, and registered 3.2% in January. In free credit operations for individuals, it is at 6.1% and for legal entities at 2.3%.
This month, the BC did not release data on indebtedness and income commitment due to the postponement of the release of the National Household Sample Survey (PNAD), by the Brazilian Institute of Geography and Statistics (IBGE). The BC uses these data to calculate the denominators, which is why they are presented with a greater lag of the month of disclosure.
The last month presented was November 2022. In that month, household indebtedness, the ratio between the balance of debts and accumulated income in 12 months, was 49.5, a level that reflects the increase in loan concessions. There was a decrease of 0.2% in the month and an increase of 0.3% in 12 months. With the exclusion of real estate financing, which takes a considerable amount of income, it was 31.5% in November.
Commitment to income, the ratio between the average amount for paying off debts and the average income calculated in the period, stood at 27.7% in November, with stability in the month and an increase of 1.6% in 12 months.
