Economics
New Colombia Central Banker Says Lower Rates May Deter Inflows
- Taboada sees wide consensus for keeping expansionary stance
- Central bank can contribute to the fight against poverty
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Colombia must take care not to drive away foreign investors or jeopardize financial stability at a time when the government’s funding needs are growing, according to one of the central bank’s new co-directors.
That’s one of the arguments against another cut to the bank’s key interest rate, which is currently at a record low, said Bibiana Taboada, who joined the bank’s board last month. At the same time, low inflation expectations, weak growth and a high jobless rate could all become arguments for more stimulus, she said.