Petro announces that the Government "withdraws from the board" of the Bank of the Republic, after interest rate hikes to 11.25%
President Gustavo Petro reported this Tuesday that the National Government withdraws from the board of directors of the Bank of the Republic, which means that...
TL;DR
- President Gustavo Petro announced the government is withdrawing from the Bank of the Republic's board of directors.
- This decision follows the board's 4-3 vote to raise the interest rate by 100 basis points to 11.25%.
- Petro criticized the rate hike, calling it an "opposition suicidal position" that harms the economy and benefits bankers.
- He argued that higher interest rates revalue the peso, hurt exporters, increase inflation, and make debt more costly.
- Bank of the Republic manager Leonardo Villar defended the decision, stating board members (excluding the Finance Minister) act independently based on technical convictions and constitutional mandates.
- Villar emphasized the bank's constitutional duty to maintain the purchasing power of the Colombian currency.