Core Insights - Outstanding bank lending in Brazil is losing momentum, with credit growth slowing to 10.1% in August from 10.8% in July, as high interest rates impact economic activity [1] - The central bank projects annual loan growth to further decline, ending the year at 8.8%, a slight upward revision from a previous estimate of 8.5% [2] - The central bank has raised interest rates by a total of 450 basis points since September last year, with the benchmark Selic rate reaching 15%, the highest in nearly two decades [3] Credit Growth and Default Rates - Monthly outstanding credit rose by 0.5% in August compared to July [3] - Default rates on non-earmarked consumer and business loans increased to 5.4% from 5.2% the previous month, indicating rising credit risk [4] - Average lending spreads widened to 32.3 percentage points from 31.8 points, reflecting increased costs for borrowers [4]