Brazil: Bank Lending Growth Slows

Brazilian bank lending rose 0.5 percent in May, the slowest pace in 16 months after the central bank raised interest rates nine straight months to discourage borrowing and stem inflation. President Luiz Inacio Lula da Silva has made increasing poor Brazilians’ access to credit one of the central economic goals of his presidency. Inflation was 8.05 percent in the 12 months through May, fueling speculation the central bank will hold its benchmark lending rate at a 20-month high of 19.75 percent.