In an effort to boost the country’s economic growth, President Gustavo Petro met with Colombia’s central bank board at the presidential palace on Thursday. The meeting came after Petro accused the bank of hindering the country’s economic progress with restrictive interest rates that are dampening internal demand.
During the meeting, solutions were discussed that would allow for lowering interest rates to benefit citizens, according to Petro’s press office. However, despite calls from both Petro and Finance Minister Ricardo Bonilla for deeper interest rate cuts, the majority of the independent bank’s board have resisted due to inflation remaining above the 3% target.
Colombia’s economy grew by just 1.1% in the first three months of the year, falling short of forecasts. Petro attributed this weak economic growth to restrictive interest rates that are dampening internal demand. As a result, many experts believe that it may be difficult for Colombia to achieve its goal of 4% GDP growth this year.
Despite these challenges, President Petro continues to advocate for lower interest rates in order to stimulate economic growth in the country. However, it remains unclear whether his efforts will be successful in convincing the central bank board to lower interest rates further.
