Brazil's Credit growth deceleration to continue in medium term

Brazil's outstanding loans month on month basis for September stood at 0.8, which are expected to slightly decline for the month of October. The outstanding loans year on year basis was at 9.1 for the month of September.

In volume terms, Brazil's outstanding loans stood at BRL 3160 billions, in September. The real credit went to negative zone with higher inflation and the credit growth continued to drop in both business and consumer segments.

"They also suggest why we should not expect a medium-term turnaround in this trend. We expect October loan data to show credit growth slipping further to 8.8% yoy", says Societe Generale in a research note.