LatinNews Daily - 02 September 2020

* Colombia’s central bank (Banrep) has reduced its benchmark interest rate by 25 basis points, from 2.25% to a historic low of 2%, to support the recovery of the country’s economy, hit hard by the coronavirus (Covid-19) pandemic. This is the sixth consecutive month in which the interest rate has been cut, down from 4.25% in March. Banrep manager Juan José Echavarría claimed that there is a clear need to “provide an additional boost to the economy”, citing “weak aggregate demand”, “excess production capacity”, “the deterioration of the labour market”, and “lower inflation”. Echavarría also noted, however, that the bank’s technical team expects interest rates to rise again in 2021.

End of preview - This article contains approximately 111 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial