The Colombian bankers’ association Asobancaria demands the Colombian government
cuts in its spending to battle the ongoing inflation and interest rates.
“The annual inflation reached 7,87 percent last august already, which is almost twice the 4 percent target,” El Espectador quoted Asobancaria. The bankers do not want the National Bank to interfere more, since it alreasy increased interests rates with 0.75 percent point this year.
According to Asobancaria, the increased interest rates have led to a slowing down of economic activity and is mainly felt by the country’s industrial sector.
As a result, the bankers think the government should cut spending and lower taxes. Bogotá should be careful the increased tax revenue of last year’s economic boom should not result in a permanent increase of government spending, Asobianca adds.