Colombia's Taboada Says Rates Must Rise Further as Bulk of Tightening Is Already Done
Updated
Updated · Bloomberg · May 15
Colombia's Taboada Says Rates Must Rise Further as Bulk of Tightening Is Already Done
1 articles · Updated · Bloomberg · May 15
Bibiana Taboada said Colombia still needs additional interest-rate increases to bring inflation under control, signaling the tightening cycle is not yet over.
The central bank may now slow the pace of hikes because “the bulk of the adjustment” has already been completed, she said in an interview at the bank’s Bogota headquarters.
That leaves policymakers with limited room to move more gradually as they carry out the remaining steps needed to finish the inflation fight.
With inflation still far above target and global oil prices surging, is moderating rate hikes a risky move for Colombia’s economy?
How might Colombia’s persistent inflation and fiscal deficits interact with external shocks to reshape the country’s economic future?