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President Dilma Rousseff's effort to slash credit card interest rates will soon be reality.
Credit card interest rates there have averaged...an astounding 323%!
The average rate in the USA is 17%...and 34% in Mexico.
Rousseff will now allow credit scoring agencies...to sort good risks from bad...and probably lower rates...to revive consumer growth and spending.
The central bank recently cut its benchmark interest rate again...to a historic 7.25% low.
Brasil's annual inflation is 4-5%...and considered acceptable.
Average consumer credit card rates could drop by 35%...after credit scoring.
AND: Hot consumer lender Itau Unibanco's stock sank after Rousseff 's plan to finally cut credit rates was announced. 'The times of high returns are over.'
http://www.bloomberg.com/news/2012-10-19/itau-sinks-as-rousseff-plan-hurts-bank-profits-corporate-brazil.html
