Post by salmasalma on Feb 27, 2024 1:04:03 GMT -5
Bloomberg Online — Central Banks Brazil, Chile and Colombia, Three of the largest economies in the region will define the course of their economic policy in the meetings scheduled for this Wednesday, which could define the roadmap that the other Latin American countries will take. while they manage to control inflation. The close of the month will be marked by the first monetary policy decision of 2024 in Brazil where interest rates are currently at 11.75%, with inflation closing 2023 at 4.62%. Attention is also focused on the monetary policy decision in Chile since rates are at 8.25% and inflation fell to its lowest level since June 2021, 3.9%.
Likewise, what will happen to interest rates in Colombia , which are at 13% after the cut made by the Bank of the Republic in December, while inflation Namibia WhatsApp Number stood at 9.28%. In Peru, the Board of Directors of that country's Central Reserve Bank (BCRP) already agreed to reduce the reference interest rate by 25 basis points to 6.50% at the beginning of this month, as inflation subsides. “Future adjustments in the reference rate will be conditional on new information about inflation and its determinants.
Warned the Board. After a period in which the central banks of these three countries (Brazil, Chile and Colombia) supported double-digit interest rates, inflation rates in these markets fell over the past year. and left room for a reduction in rates, the Brazilian Fábio Pereira de Andrade, professor of economics and international relations at ESPM, explains to Bloomberg Line . According to the academic, if analyzed as a whole, this decrease should change the valuation of the debt securities of these countries, since the central banks of these markets lower their interest rates at the same time as the FED (US Central Bank.
Maintains its fixed interest rate at the highest level in the last 20 years. “At an aggregate level, it can be said that the monetary authority hopes that the fall in interest rates will not slow down the growth of these economies,” he noted. Headquarters of the Central Bank of Brazil in Brasilia.dfd Central Bank Headquarters of the Central Bank of Brazil in Brasilia. (MARcello Casal Jr/Agência Bras/Marcello Casal JrAgência Brasil) He also noted that it is important to make a distinction, since the central banks of Colombia and Brazil operate with inflation targeting regimes. In 2023, Colombian inflation fell, but was well above the average, while In Brazil, inflation remained within the defined range. So, in relative terms, he analyzes that “lowering interest rates in Brazil is a process that offers less risk of generating inflationary pressures .
Likewise, what will happen to interest rates in Colombia , which are at 13% after the cut made by the Bank of the Republic in December, while inflation Namibia WhatsApp Number stood at 9.28%. In Peru, the Board of Directors of that country's Central Reserve Bank (BCRP) already agreed to reduce the reference interest rate by 25 basis points to 6.50% at the beginning of this month, as inflation subsides. “Future adjustments in the reference rate will be conditional on new information about inflation and its determinants.
Warned the Board. After a period in which the central banks of these three countries (Brazil, Chile and Colombia) supported double-digit interest rates, inflation rates in these markets fell over the past year. and left room for a reduction in rates, the Brazilian Fábio Pereira de Andrade, professor of economics and international relations at ESPM, explains to Bloomberg Line . According to the academic, if analyzed as a whole, this decrease should change the valuation of the debt securities of these countries, since the central banks of these markets lower their interest rates at the same time as the FED (US Central Bank.
Maintains its fixed interest rate at the highest level in the last 20 years. “At an aggregate level, it can be said that the monetary authority hopes that the fall in interest rates will not slow down the growth of these economies,” he noted. Headquarters of the Central Bank of Brazil in Brasilia.dfd Central Bank Headquarters of the Central Bank of Brazil in Brasilia. (MARcello Casal Jr/Agência Bras/Marcello Casal JrAgência Brasil) He also noted that it is important to make a distinction, since the central banks of Colombia and Brazil operate with inflation targeting regimes. In 2023, Colombian inflation fell, but was well above the average, while In Brazil, inflation remained within the defined range. So, in relative terms, he analyzes that “lowering interest rates in Brazil is a process that offers less risk of generating inflationary pressures .