Brazil’s average interest rate on individual loans dropped to a 16 yr low of 40.5% a year in June, from 41.5% in the previous month, the Central Bank said Tuesday.

The decline can be attributed to a fall in loans with high interest rates such as overdraft protection programs, said the bank.

“It was the migration to cheaper credit loans instead of banks that reduced the interest rates,” said Altamir Lopes, head of the economic department in the Central Bank.

The average interest rate on overdraft protection programs reached 165.1% a year while the personal loan rate fell from 43% a year in May to 42% in June, said the Central Bank. —Paul A. Ebeling, Jnr. www.livetradingnews.com

Posted by Shayne Heffernan on Jul 28th, 2010and filed underBRIC, Equities, Latest News, Markets.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site