Colombia Finance Ministry and Business Groups Make Rare Joint Plea for Interest Rate Cuts

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Colombia’s Finance Ministry joined the nation’s top bankers and industrialists in calling for interest rate cuts to revive the weak economy.

In a rare combined statement, Finance Minister Ricardo Bonilla added his voice to the private business groups asking the central bank to ease monetary policy sooner rather than later.

The central bank has earned its credibility, but now faces a “new reality” as inflation starts to cool, the three institutions said in their statement. Monetary stimulus would dynamize industry and help create jobs, the statement added. Brazil and Chile are now easing monetary policy, while Mexico and Peru are expected to cut interest rates in the coming months. Economists surveyed Colombia’s central bank expect the first interest rate cut in October.Bonilla is a voting member of the seven-member monetary policy committee that meets to decide on interest rates on Sept. 29. Colombia’s 13.25% monetary policy rate is the highest alongside Brazil’s among the region’s major economies.

 

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