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Bonilla Says Colombia Cannot Tolerate Real Rates Around 4.4%

COLOMBIA
  • Some additional colour has been provided by Bloomberg following the earlier Bonilla headline:
    • The debate will be whether the move will be 50 bps, 75 bps or 100 bps, Finance Minister Ricardo Bonilla said in an event organized by Cambio magazine.
    • Inflation will continue to slow in February, making the real interest rate even higher. The current real rate is about 4.4 percentage points.
    • “The country can’t tolerate real rates of that size because economic recovery requires starting to reduce rates”.

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