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Consumer credit demand in Brazil falls in April from previous month

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Consumer credit demand in Brazil falls in April from previous month

Consumer demand for credit in Brazil increased 3.8% year over year in April, but declined 0.7% compared to the previous month on a seasonally adjusted basis, according to credit research firm Boa Vista SCPC.

In the 12 months through April, demand for consumer credit ticked 2.9% higher compared to the previous 12-month period, the firm said.

In the monthly comparison, credit demand from the indicator's financial segment improved 8.0% in April, while the nonfinancial segment saw a decrease of 6.5%.

"The slow recovery of economic activity and high unemployment at the beginning of the year have reduced the pace of consumption growth and, consequently, the demand for credit," Boa Vista said in a statement. However, it added that consumer loan demand in Brazil is expected to improve gradually considering the positive outlook for interest rates and inflation.

The country's central bank decided to hold its benchmark Selic rate at 6.50% at its most recent meeting earlier in May, but it did consider a rate cut before arriving at the final decision.