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Brazil Bank Interest Rates At 20-Year High

Things in Brazil are getting worse by the day as the following brief summary of soaring interest rates courtesy of BNAmerics demonstrates.

Brazil Bank Interest Rates At 20-Year High

Brazil's overdraft interest rates reached 12.28% in October, the highest since September 1995 when the rate was 12.58%, according to research conducted by consumer protection group Procon.

Of the seven financial institutions included in the research, five increased their overdraft rates and one upped its rate for personal loans. The average overdraft rate of 12.28% per month was higher than that registered in September, 11.90%.

 

The bank that increased its rate the most was Caixa Econômica Federal, which changed its rate to 11.38% from 10.35% per month, a variation of 9.95% when compared to the September rate, Procon said.

Santander saw a positive variation of 4.21% from the previous month, Banco do Brasil had a variation of 3.69%, Itaú's variation was 2.58%, and Bradesco's was 2.41%. Other banks maintained their rates.

For personal loans, the average rate of banks surveyed was 6.27% per month, higher than the previous month, which was 6.26%. Bradesco raised its rate to 6.61% per month, an increase of 0.61% over September's rate. Other banks maintained their rates.

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That said, she doesn't appear too concerned.