2024-02-29 16:03:26
According to the analysis of the Scotiabank Colpatria team, the interest rates of the Bank of the Republic could experience a notable reduction, estimating that they will fluctuate between 7% and 8% at the end of this year. This projection represents a significant decrease of 5% compared to the current level, which stands at 12.75%.
In the podcast “Where Are We Going?”, Sergio Olarte, chief economist at Scotiabank Colpatria, shared insights about the importance of interest rates, describing them as “a price that, depending on where you buy, would change depending on transportation or quality”.
Olarte explained that the money that circulates has a price to carry out transactions, and highlighted that savings, when deposited in a bank, can generate increases through returns, which translate into the interest rate.
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The economist also addressed the reason behind the changes in interest rates. According to Olarte, when the central bank perceives the need to reduce spending and encourage savings, it raises the price of money. On the other hand, if inflation decreases due to a drop in production, the central bank can lower the interest rate to boost spending and reduce savings.
Olarte highlighted the responsibility of the Board of Directors of Banco de la República in this process.
In relation to usury rates, the economist pointed out that the Financial Superintendency establishes limits for loans, indicating the maximum that can be collected. Additionally, he warned about the risks associated with drop-by-drop, highlighting the lack of supervision and the high interest rate in these cases, especially on credit card loans due to the risk of default. Olarte recommended caution, especially when dealing with informal schemes such as drip, emphasizing that “absolutely no one watches them.”
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