Loan growth to slow down to 12-13% this year, says finance minister

Friday, March 4, 2011

Loan growth in Brazil will slow down this year to between 12% and 13%, finance minister Guido Mantega told a conference call on the state of the country's economy.

GDP grew at its fastest pace of the last 25 years in 2010, expanding 7.5%. The stellar performance of the economy also fueled rapid loan growth of 20.5% last year.

Mantega said the economy will grow around 4.5-5% in 2011, as the government aims for sustainable growth without inflationary pressures by cutting spending, and central bank BCB takes measures to cool down loan growth.

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BCB hiked its Selic benchmark interest rate by half a percentage point on Wednesday (March 2) to 11.75%.