'Coordination and not subordination, between the Government and the Bank of the Republic', requests former minister Amylkar Acosta
Amylkar Acosta, former Minister of Mines and Energy Photo: CEET
TL;DR
- Finance Minister Germán Ávila resigned from the Board of the Bank of the Republic due to a disagreement over a 100 basis point interest rate increase.
- The intervention rate was raised to 11.25%.
- Former Minister Amylkar Acosta criticized Ávila's resignation and stressed the importance of coordination without subordination between the government and the central bank.
- Acosta noted that high public spending, debt, and minimum wage increases contribute to inflation.
- The 1991 Constitution granted autonomy to the Bank of the Republic's board.
- The Constitutional Court has affirmed the central bank's independence.