Monetary and Credit Statistics released on Monday (Apr. 27) by Brazil’s Central Bank indicate that households remain under pressure from high borrowing costs and are turning to short-term options such as credit cards.

In March, the average interest rate on unsecured credit to individuals remained high at 61.5 percent per year, despite a monthly decline of 0.4 percentage points (p.p.).

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• Brazil’s Central Bank cuts benchmark interest rate to 14.75% per year.

With Brazilians paying such high interest rates, delinquency on total credit in the National Financial System (SFN) stood at 4.3 percent of the portfolio in March, down 0.1 percentage points (p.p.) in the month but up 1.0 percentage point over 12 months.

Among households, the rate reached 5.3 percent, up 1.4 percentage points over one year.

According to the bank, Brazilian household debt reached 49.9 percent of the SFN’s total credit in February (up 0.1 percentage points in the month and 1.3 percentage points over 12 months), while the share of income committed to debt reached 29.7 percent (up 0.2 percentage points in the month and 1.9 percentage points year over year).

Household credit continues to expand

The outstanding balance of credit operations in the National Financial System (SFN) totaled BRL 7.2 trillion in March, up 0.9 percent in the month.

Credit to households reached BRL 4.5 trillion, up 0.8 percent in the month and 10.9 percent over the past 12 months.

For unsecured credit to individuals, the balance reached BRL 2.5 trillion, up 1.1 percent in the month and 12.3 percent compared to March 2025. The Central Bank highlighted the increase in cash credit card transactions, payroll loans for private-sector workers, and auto loans.

Credit directed at households - which includes lines with terms and conditions defined by specific rules - totaled BRL 2.0 trillion, up 0.5 percent in the month and 9.3 percent over 12 months.

Expanded credit reaches BRL 21 trillion

Total credit extended to the non-financial sector reached BRL 21.0 trillion in March, equivalent to 162.3 percent of gross domestic product (GDP—the sum of all final goods and services produced in a country, state, or city, generally over a year), down 0.3 percent in the month. Over 12 months, it increased by 11.2 percent.

Of the total, credit to companies reached BRL 7.1 trillion, up 1.5 percent in the month, driven mainly by private debt securities, external loans, and SFN operations.

President Luiz Inácio Lula da Silva said on Sunday (Apr. 26) that he “vehemently condemns” the attack on US President Donald Trump, which occurred on Saturday (25) during a meeting with journalists in Washington.

“My solidarity goes out to President Donald Trump, First Lady Melania Trump, and everyone present at the correspondents’ dinner in Washington. Brazil vehemently condemns the attack,” reads a statement posted by Lula on social media.

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• Lula criticizes Trump’s threats to the world and defends Pope Leo XIV.

“Political violence is an affront to democratic values we must all protect,” added the Brazilian president.

Shots were fired during the White House correspondents’ dinner attended by Trump.

Gunfire was heard nearby, and President Trump and First Lady Melania Trump were quickly escorted away by the US Secret Service.

The dinner was attended by, among others, Vice President J.D. Vance and Secretary of State Marco Rubio, who were also evacuated from the hotel.

President Trump held a press conference at the White House after the attack and said the shooter was a “lone wolf,” a term used to describe criminals who act alone.

Despite Trump’s remarks, the US Secret Service has provided no further details about the suspect.