Brazil Caps Overdraft Interest Rates. They’re Still 150% a Year

Brazil’s central bank capped the rates of overdraft loans, one of the country’s most expensive forms of credit. Overdraft loans may not surpass a limit of 8% per month, or about 150% a year, starting on Jan. 6 2020. At present, interest rates on this automatic banking credit averages around 306% a year.

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Source: Bloomberg

Categories: Macroeconomy/Finance