Brazil loosens credit policy

Brazil loosens credit policy

Bonds Corporate & Sovereign Strategy

Brazilian regulators relaxed bank reserve requirements on Friday in a bid to counter a slowing of credit to the real economy. The central bank estimated the changes would add around BRL30bn ($13.46bn) of liquidity to the system. Among other measures, the bank said that up to half of funds held in reserve against current account deposits can be used for new lending. “Overall, the bank is undoing some of the macro-prudential operation implemented in 2010 to slow down very exuberant credit growth,”

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial