São Paulo, November 21, 2003 (Agência Brasil - ABr) - Interest rates on special checking fell to the lowest level since January, 1995, according to a study released on Thursday (20) by the Procon (Consumer Protection Agency) of São Paulo. The study found an average monthly interest rate of 8.29%, 0.05% less than last month (or a reduction of 0.60%).

The Procon study, which was conducted in 11 financial institutions from November 6-7, discovered a 0.14% drop, compared with October, in the average monthly rate charged for personal loans, 5.36%. This was the smallest percentage since September, 2001, when the rate was 5.28%.

According to the Procon's technical analysis, although interest rates continue to fall, there were no significant variations in the average rates. Of the eleven institutions included in the study, rates on personal loans were lowered in eight, remained stable in two, and were raised in one. For special checking, rates were lowered in seven, remained stable in three, and were raised in one.

Projections indicate a deceleration in the pace at which interest rates are falling. (DAS)