Brazil Savings See R$23.5 Billion Net Withdrawal in January as Stock Slips to R$1.005 Trillion

Overview

• Central bank data show R$331.2 billion in deposits and R$354.7 billion in withdrawals in January, resulting in the net outflow.
• The savings stock fell from R$1.022 trillion in December to R$1.005 trillion, with R$6.4 billion in returns credited last month.
• January’s net withdrawal was 10.3% smaller than a year earlier, when outflows reached R$26.2 billion.
• Net withdrawals have prevailed in recent years, totaling R$87.8 billion in 2023 and R$15.5 billion in 2024, and the last January with net inflows was 2014.
• The Selic stands at 15% per year, which makes alternative fixed-income products more attractive, and Copom has confirmed rate cuts will start in March without specifying the size.