Issuer surprised with new lower interest rate from 3.5% to 3% 11:37 AM


The decision came as a surprise to the financial world did not expect a rate cut, much less in magnitude than did the Issuer. In fact, according to recent surveys, 95 percent of financial analysts will bet on the stability of the intervention rate. The stated rationale that the Issuer is the good behavior of inflation, which is at lower levels than expected. With the decision on Friday is expected that the cost of credit to banking users continue to fall and demand is stimulated to give further impetus to economic recovery. The Issuer stated that the Colombian economy has a significant recovery rate without compromising the price control of the family budget. "The information received in recent weeks suggests that the economy is recovering faster than expected, without generating inflationary pressures.
Factors such as increased global economic growth, improvements in the confidence of the agents and dynamics of several leading indicators show the strength of growth. He adds that "despite the higher growth of the economy, maintaining a negative gap, coupled with the good performance of inflation and expectations, allows a more expansionary monetary policy without compromising the goals of inflation and macroeconomic stability." The manager of economic research Bancolombia Group, Daniel Child, believes that the central provision of the Issuer was to cut the real interest rate, is discounting inflation.

*http://www.portafolio.com.co/

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