Colombia’s half-point interest rate reduction in March may be the last, said finance minister Mauricio Cardenas Monday.
According to Cardenas the country, which now has the lowest rates in Latin America, “has now arrived at the limit of how much the central bank can cut its interest rates.”
The minister said “the central bank has played its final cards” regarding the
“You can never say never on this subject,” said the minister. “B
The huge reduction 10 days ago came on the heels of two quarter-point cuts in January and February.
According to Banco de la Republica, weak growth and below target inflation prompted the massive cut, which it
The bank said that monetary stimulus was reaching the economy at a slower pace than desired.
The reductions should lower mortgage rates, as the government is pushing the financial sector to pass the cuts on in line with the central bank, making it “a good time to buy houses,” according to Cardenas.