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BanRep Says Latin America Needs High Rates for Longer

COLOMBIA
  • BanRep Governor Villar Says Latin America Needs High Rates for Longer (Bloomberg)
  • In Colombia’s case, the central bank will have missed its goals in 2021, 2022 and 2023, with price rises only cooling to the target range in late 2024, Villar said in Bogota.
  • “This makes it important to keep policy relatively restrictive, contractive,” he said. “That doesn’t mean that nominal interest rates can’t fall as inflation slows, but with great caution, and only when there’s a lot of tranquillity that the process of inflation convergence is happening.”

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