President of Colombia's Central Bank says Brazil is not an example to be followed

Abroad, Brazil has received criticism due to the possible increase in interest rates. Mauricio Villamizar, director of the Central Bank of Colombia, warns that Brazil is not an example to be followed, when it comes to economic plans; as he claims to be against the possible Brazilian strategy of increasing the Selic rate, after the recent cut cycle.

Villamizar criticizes the Brazilian economic model

Maurício also argues that radical changes in economic policy should not be considered healthy, and for this reason he cites Brazil as a negative example. Villamizar, who holds a PhD in economics from Georgetown University in the United States, also proposes that monetary authorities adopt methods that demonstrate commitment to combat inflation. This way, situations like the increase expected by Brazil would not occur. The assessment was made at the end of a lecture in which the director of the Colombian Central Bank also argued that the most important mission is to create conditions for the economy to evolve. For him, the greatest possible growth over the longest period of time is essential, so that this is consistent with lower rates in the future.

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_{Mauricio Villamizar, president of the Central Bank of Colombia (Reproduction/Ting Shen/Bloomberg/Getty Images Embed)}

President pressures Colombian central bank to cut interest rates

Gustavo Petro, the president of Colombia, has been pressuring the Colombian Central Bank to reduce interest rates quickly. Last Friday, August 23, Gustavo took to social media to talk about cutting the base rate as a way to free up Treasury funds for the Colombian budget, which could then be used for various expenses in the country.

Gustavo also made reference to Jerome Powell, president of the United States Central Bank. The Colombian president also signaled in his speech given on the same day that the time has come to make changes in interest rate policy by reducing rates, which could eventually occur in September of this year.

Featured photo: Mauricio Villamizar (Reproduction/Central Bank of Colombia)