President Petro confirms 'the government withdraws from the Board' of the Bank of the Republic after controversy over rates
Portafolio Journalist 03/31/2026 16:33 Updated: 03/31/2026 16:44
TL;DR
- President Petro announced the government will withdraw from the Bank of the Republic's board.
- The decision follows the board's increase of the interest rate by 100 basis points to 11.25%.
- Finance Minister Germán Ávila left a board meeting early and criticized the rate hike as "irresponsible."
- The Bank of the Republic stated the rate hike is needed to bring inflation down.
- President Petro believes high interest rates harm economic activity and benefit bankers.
- The Bank of the Republic defended its constitutional mandate to protect the currency's purchasing power.
- The relationship between the government and the central bank is entering a phase of heightened tension.