Inflation in Colombia was 13.34 percent and full 23 months up since it had its minimum level, of 1.51% per year, in March 2021. Given this panorama, the Minister of Finance, José Antonio Ocampo, has been working to mitigate the rise in prices, the greatest evil that afflicts the country in terms of economic.
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In an interview with the newspaper Briefcaseof this publishing house, Ocampo announced that he will continue in the Petro government after he was approved for a second year of license at Columbia University, in the United States, where he teaches.
He also emphasized inflation and mentioned his outlook for this month of April. “Actually, in March it was the same level, that is, we have spent three months with figures around 13%. But within that 13% there are several positive news. Food inflation has already been falling for three consecutive months, and that has favored poor households; So, that inflation of lower-income households. That is something very positive”, said the Minister of Finance.
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I am absolutely sure that this month we are going down with inflation.
Ocampo stated that other positive news “is that the Producer Price Index, which last month had its first single-digit inflation in several months, was a little over 7 percent. In addition to this, the exchange rate has also had a positive trend recently, so I am absolutely sure that this month we are going down with inflation”.
Agreement with businessmen to reduce inflation rate?
Minister Ocampo also stated that meetings with businessmen are being planned to reach agreements. “We are advancing in the first meetings these days. The first one was coordinated by the Minister of Commerce, Industry and Tourism, ”he said.
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Is the rate hike cycle over?
For Ocampo, “the expectation of lower rates is already clearly in the market. In fact, the latest survey of Fedesarrollo analysts speaks of the expectation that the Bank’s rate will be 9% by the end of the year. We will see in practice how much materializes. Initially I do not see a reversal in rates, but I think that from the second semester a reduction can be expected”.
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Initially I do not see a reversal in rates, but I think that from the second semester a reduction can be expected.
Minister Ocampo also stated: “Meanwhile, it has been possible to work on some rate reductions with commercial banks, which have already made several reductions, obviously in dialogue with the Government. So for small debtors there is already a significant rate reduction, and there is the entire line of special credits that we are taking out from the Government through the Bicentennial group, which already includes the entire microcredit program, credit inclusion, but we are also going to create a line for San Andrés, For the tourism sector of small towns, the Ministry of Agriculture has already announced a special one for small farmers, there are several issues that we are working on.
We are seeing to what extent programs can be made to lower interest rates”.
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