Efforts to Control Inflation and Stimulate Economic Recovery

🏦 The Banco de la República played a crucial role in helping Colombia recover economically during the pandemic.

💰 To control inflation, the Banco de la República raised interest rates, resulting in a slowdown in consumption and GDP growth.

📉 Although there was a deliberate slowdown, it is expected that inflation will converge to the long-term target of 4% in 2024.

📈 The message is not to postpone major financial decisions such as buying a house or paying for college, as liquidity conditions in the economy are expected to improve in the coming months.

💼 The government, businesses, and banks are working together to ensure that the improved liquidity conditions translate into better interest rates, protecting the economy and jobs of Colombians.

🏦 Respectfully, a request has been made to the independent Bank of the Republic to consider lowering interest rates in order to further support economic recovery.

The speaker expressed concern about the limited effectiveness of interest rates in controlling inflation.

They acknowledged the importance of protecting the exchange rate and recognized the efforts of the Central Bank.

They mentioned the factors that could lead to a reduction in interest rates, including a decrease in inflation and economic activity.

📉 The capital declination of 24% in the second quarter is attributed to the complexity and high cost of purchasing machinery.

💰 High interest rates and exchange rate fluctuations are impacting project viability and credit availability.

🌎 Taking inspiration from other countries, there is a need for counter-cyclical measures to stimulate investment and employment.

📈 The economy has reached the limit of its cooling policy, and now we need to focus on recovery.

💼 The recovery process requires collaboration between the public and private sectors, as well as the financial sector.

🏗️ To ensure the financial closure of projects like housing and infrastructure, the financial sector needs to contribute.

💰 The increase in intervention rates has stabilized, allowing for the opportunity to lower interest rates in order to finance investment projects for economic recovery.

🏗️ The focus is on restarting and completing pending construction projects, with both public and private sectors collaborating in order to achieve financial viability.

📉 The goal is to lower interest rates, and it is expected that the central bank will consider this in upcoming meetings to spur economic growth.