Colombian Finance Minister Oscar Ivan Zuluaga said Monday that he doubts further rate cuts would boost the country’s economy.
“I am not that sure that, today, cuts of interest rates may generate further stimulus,” Zuluaga told reporters four days before the next meeting of the central bank board, of which he is a member.
The central bank’s seven board members will meet on Friday to discuss monetary policy. Last week Zuluaga said the bank will discuss possible options to limit the appreciation of the peso, which makes the country’s exports less competitive.
He mentioned the possibility of the bank buying dollars on the currency market to limit the strengthening peso, which has appreciated 21% so far this year.
Analysts such as Carlos Ramos and Juan Camilo Dauder from Interbolsa have said they expect the central bank board to cut its rate by half a percentage point to 3.5% on Friday. (Dow Jones)