Colombia’s economy probably grew “very close” to its potential in the first quarter as industry recovers and construction and mining continue to expand, Finance Minister Mauricio Cardenas said. Interest rate swaps rose.
Colombian policy makers may revise upward their estimate of how fast the economy can grow, giving the central bank more leeway to use low interest rates to boost growth, Finance Minister Mauricio Cardenas said.
Colombia may reduce a tax on foreigners’ bond profits to less than 5 percent, or eliminate it entirely, as the government seeks more overseas buyers of its peso-denominated debt, Public Credit Director Michel Janna said. Bonds rallied.
Colombia’s central bank may slow or halt its purchases of dollars in daily auctions, Finance Minister Mauricio Cardenas said, as the peso weakened to a three-year low on speculation the U.S. will curb asset purchases.
Colombian policy makers are constrained in their ability to offset weak global demand with monetary stimulus due to the risks excess borrowing might pose to the country’s financial system, Finance Minister Mauricio Cardenas said.
Colombian Finance Minister Mauricio Cardenas says that when he travels next week to Switzerland for a meeting of the world’s richest capitalists, he won’t be lobbying for investment. After spending his first four months on the job trying to protect the economy from a currency rally, he doesn’t need more dollar inflows.