Government and Bank of the Republic break relations: this is what the Ministry of Finance said about its withdrawal from the board
The Minister of Finance, Germán Ávila, abruptly withdrew from the meeting of the Board of Directors of the Bank of the Republic, where a decision was to be made on maintaining, lowering, or increasing the monetary policy interest rate...
TL;DR
- The Minister of Finance, Germán Ávila, withdrew from the Bank of the Republic's board meeting.
- The withdrawal was due to a disagreement over a proposal to increase the monetary policy interest rate from 10.25% to 11.25%.
- The Minister argued that the rate increase would hinder economic growth and serve particular interests.
- The government believes inflation is due to international supply shocks, not domestic demand.
- The Ministry of Finance criticized the Bank of the Republic's reliance on surveys of financial entities, suggesting a conflict between financial and productive economic interests.
- The government called for a broad public debate on economic policy and the functioning of the central bank's board.
- The Ministry of Finance announced a "significant distance" from the Bank of the Republic until greater coherence between monetary policy and the country's economic and social situation is achieved.