2024-02-24 05:02:33
The Scotiabank Colpatria team projects that the interest rate of the Bank of the Republic will be between 7% and 8% by the end of 2024. This represents a 5% decrease compared to the current 12.75%.
In the podcast Where Are We Going? Sergio Olarte, chief economist at Scotiabank Colpatria, explained the importance of interest rates, which would be “a price that, depending on where it is purchased, would change depending on transportation or quality“.
“The money we have in our possession has a price to make transactions,” says Olarte.and adds that savings, when given to a bank, can increase through returns, which is the interest rate.
LR Chart
Why does it go up and why does it go down?
For Olarte, the central bank sends signals that it will raise the price of money to avoid spending and increase savings. In the event that inflation is low due to the fall in production, the central bank would decrease the interest rate to increase spending and reduce savings.
“That is the task that the Board of Directors of the Bank of the Republic has,” said the economist.
And the usury rate?
Olarte indicated that There are several usury rates indicated by the Financial Superintendency that indicate the maximum that can be charged for a loanand assured that the risk of a credit card usually has the highest interest due to the risk of default.
However, recommended avoiding drips, since “absolutely no one monitors them.” (…) The drop by drop doesn’t want me to pay him, but interest.”
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