[ad_1]
August 31, 2020 – 03:34 pm
Colprensa
A new reduction in interest rates agreed on Monday by the board of directors of Banco de la República.
With the decision, taken unanimously, the rate was reduced by a quarter of a percentage point to 2%.
According to the entity, the decision was made taking into account that it is necessary to “provide an additional boost to the economy”, since the effects of monetary policy may have a greater impact as the gradual reopening of different sectors continues. .
Read also: Duque defended loan to Avianca: “it represents 50% of the connectivity”
The Bank recalled that inflation in July was 1.97%, the average of the core inflation indicators was 1.76%, and inflation expectations from the surveys at the end of 2021 are 2.87%.
Likewise, the result of growth in the second quarter confirms a weak aggregate demand, and excess production capacity, in addition to a deterioration in the labor market and a reduction in labor income.
As stated by the Bank in a statement, “financial market conditions have improved compared to the beginning of the crisis and the high liquidity of international and local markets has translated into lower sovereign risk premiums and adequate access to financing Additionally, there has been an adjustment in the current account deficit that is expected to continue throughout the year and which reflects lower external financing needs. “
[ad_2]
