2024-10-03 02:58:36
Following the decision of the Board of Directors of the Banco de la República to reduce the intermediation rate by 50 basis points, leaving it at 10.25%, the Minister of Finance, Ricardo Bonilla González, reiterated that the Issuer’s economic policy continues to be “contractionist.” ” and called for taking advantage of this “opportune moment” to promote the country’s economic reactivation.
Bonilla expressed that, although he recognizes the actions of the Central Bank, he considers that greater efforts must be made to facilitate economic growth. “Inflation has decreased by 722 points, but the Bank’s intervention rate has only dropped 300 points. This leaves an important margin that we must review, especially in terms of rates, to contribute more decisively to the recovery of growth,” stated the minister.
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The head of the economic portfolio highlighted that commercial banks have been more agile in reducing their ratesespecially with regard to housing credit, which is already below the reference rate of the Bank of the Republic. According to Bonilla, this dynamic of the banking sector is a clear sign that there is room for greater flexibility in monetary policies, which would facilitate access to credit and energize key sectors of the economy.
The decision to reduce the interest rate by 50 basis points was not unanimous. Of the seven co-directors, four voted in favor of the proposal, while three supported a more aggressive reduction, of 75 basis points, as Minister Bonilla had requested.
Bonilla has insisted that the Government’s objective is for the Banco de la República’s intermediation rate to close in 2024 at 8%. Since November last year, the rate has been progressively reduced, starting at 13.25% and going through six consecutive cuts to reach the current figure.
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