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