Differentiated recovery of credit and deposits in the face of moderation of the pandemic.

Summary

The reduction in COVID-19 cases during October seems to have influenced a heterogeneous boost to credit, while the relevant rise in formal employment and the cycle of monetary tightening were reflected in an incipient change in the trend of term deposits.

Key points

• Key points:
• Credit to the NFPS grew 0.2% in October, after 11 months of nominal contractions.
• Business credit registered a better performance for almost all industries.
• Consumer credit showed nominal annual growth, although performance was heterogeneous by segment.
• Mortgage credit continues to grow, although with a slowdown in real terms.
• Private sector deposits uptake in October driven by employment and the rate hike cycle.

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