Economy & Business - July 2020

COLOMBIA | Interest rates. On 30 June, Colombia’s central bank (Banrep) reduced its benchmark interest rate by 25 basis points, from 2.75% to 2.5%, as part of its efforts to mitigate the impact of the coronavirus (Covid-19) pandemic. This is the fourth consecutive month in which interest rates have been cut, down from 4.25% in March, and the downward trend is unlikely to stop here, with two members of Banrep’s seven-person board reportedly having voted for interest rates to be cut by 50 basis points rather than 25. Banrep manager, Juan José Echavarría, warned that “the uncertainty is enormous”, recognising that “at some point we will have to stop […] but that will be determined by the economy”.