Banco de la República expects annual GDP growth of 0.8%

Banco de la República expects annual GDP growth of 0.8%

While the board of directors of the company Republic Bank by 25 basis points Monetary policy interest rate of up to 13%It also announced that it had raised its forecast for GDP growth to 0.84% ​​this year.

Leonardo Villar, Release Manager He said the growth forecast has been revised upwards as follows:At the previous meeting it was said that we expect 0.2% for GDP and now it has increased to 0.8%, which is still low.“.

(In microcredit, there will be a new usurious rate).

The review is the motivationBecause of the better-than-expected data and also because the Dane revised the 2022 GDP downward, rising from 8 to 7.5%. That generates less base for comparison and against the same base that generates more growth for 2023“.

Villar said that with the approved decision, Monetary policy continues its goal of bringing inflation towards its 3% target.

He emphasized that inflation expectations are starting to incorporate this positive news about the recent behavior of inflation. The Banco de la República’s survey of economic analysts in March showed that 12-month inflation expectations fell from 7.7% in January to 7.2% in March.

(Why, if the interest on the card decreases, the rate of usury increases).

Among the considerations of the bank’s board of directors was that the fluctuations in international markets were exceptional between January and March due to financial stability problems in the United States and some European countries. The situation added uncertainty, but its effects on Colombia were limited.

he Finance Minister, Jose Antonio Ocampo He emphasized that there has been a decline in the TES rate of three percentage points since October 2022 and that in the midst of a context of rising prices, which is indicative of the confidence that has been created.

He also pointed out that the decline in microcredit rates and the banks’ decision to keep pace with the government by lowering interest rates is positive and that, according to the Board of Directors, it does not contradict monetary policy.

(The Bank of the Republic raised interest rates to 13%).

Jonathan Malagon, President, AsobancariaHe said that raising the rateThis does not affect the trend that we witnessed in the banking sector, which was expecting lower interest rates on various productssalute efforts central bank to control inflation.

(UVR or Fixed-Rate Credits: Which Option Is Best for You?).

last Thursday Financial Supervision Certificate that the interest rate of consumer credit in April was 47.09%, which means an increase of 83 basis points per month. Similar to what happened with the issuer’s rates, this is the smallest increase in the usury rate in the past year.


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