The Colombian government lowered interest rates to help stimulate the economy during a time of international crisis, reported local media Friday.
Jose Dario Uribe, manager of the Republic Bank, explained the results of the second trimester confirmed the weakening of global growth, and that the interest rates will be reduced by 25 points to be at 4.75% during September.
“In accordance with the evaluation of current risk, the board of directors considered it appropriate to reduce the rate of interest. The new information will permit establishing future actions of monetary policy,” said Uribe.
“Reducing rates will help stimulate the economy in an international environment that has symptoms of weakening in Europe and Asia,” said Mauricio Cardenas Santamaria, new Minister of Finance.
The Republic Bank also announced the purchase of at least $500 million to provide more liquidity to the Colombian economy.
The main challenge is to continue consolidating the Colombian economy, and maintain a line of economic growth to eventually enter into the “rich man’s club” of developing countries (OECD).