Banks raise interest rates on loans again in January. see prices
Loan interest rates rose again in January. This is shown by the Anefac survey of interest.
The general average personal interest rate increased by 1.10% on the month and by 1.51% year-on-year, from 6.39% per month (110.29% per annum) in December 2021 to 6 .46% per month (111.95% per year) in January 2022. This is the highest interest rate since December 2019.
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Taking into account all increases in the base interest rate promoted by the Central Bank since January 2021, the average personal interest rate increased during this period by 20.91%, from 92.59% per year in January 2021 to 111.95% per year in January 2022.
For Miguel José Ribeiro de Oliveira, executive director of studies and research of the association, the increases occur due to the increase in future interest rates, the increase and the expectation of an increase likely default rates.
Likely default may occur due to “end of loan shortages (discontinuations and grace periods in debt negotiations), high unemployment, end of emergency aid payments, increased inflation and its effects on income and greater selectivity of banks in granting credit”. .
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Also influencing the increase in interest on loans, the announcement of tax increases for financial institutions of the Contribution Sociale sur les Liquidités (CSLL) in 2021 and the increase in compulsory deposit rates for banks from 17% to 20 %. The objective of the Central Bank is to reduce the liquidity of the financial system to fight against inflation.
For the coming months, Oliveira believes that with the deteriorating economic scenario, increased credit risk and higher default rates, as well as likely further increases in the base interest rate as a way to reduce inflation , the trend is downward interest rates interest rates on credit transactions continue to rise.