Colombia | The vaccine against inflation: interest rate hikes

Summary

In the current global scenario, the general price level has lost stability. During the pandemic, supply was paralyzed, generating bottlenecks that caused prices to rise. In the region, central banks decided to increase interest rates to counter inflation.

Key points

• Key points:
• In a context of pandemic and military confrontations, prices have lost stability at a global level.
• During the pandemic, bottlenecks were generated by the paralysis of supply due to the freezing of the productive apparatus and restrictions on trade and mobility, generating an increase in the price level.
• In Latin America, central banks have been increasing their monetary policy rates to counteract high inflation levels.
• It is expected that central banks in the region will continue the trend of recent months, with further interest rate increases.

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