The declines in the cost of credit in Colombia continue: it is the other banks that would reduce their interest rates

In a difficult year of economic downturn, in which the pockets of Colombians have suffered severe blows, apparently the banks have started to give in and on Thursday, March 9, early in the morning, Bancolombia warned that it would lower its interest rates. interest, almost in half, going from 46% to 25%.

This fact, which had a positive reception in public opinion, to the point that the President of Colombia, Gustavo Petro, congratulated the initiative and called on other entities to do the same.

“It seems very good to me that Bancolombia is lowering its interest rate substantially. Other banks are expected to follow suit.. We are not going to allow ourselves to stagnate financially. It’s time to move on,” he said minutes after the news was shared by the president.

Well, a few hours later, at the height of noon, Mario Pardo, bank president BBVA, indicated that the inflation in Colombia reached its maximum, which could suggest that it would fall in the coming months, which would have a direct effect on interest rates.

“We in Colombia are at the peak of inflation and this makes us anticipate that we are passing the peak of interest rates, with which our opinion is that interest rates will go down in the other months and We hope that all products will go down, starting with bank cards”, were the specific words of President Pardo quoted in Publications week.

The board of the Banco de la República is responsible for raising or lowering said interest rates and, as it has stated for the past six months, it has had to increase them drastically to contain galloping inflation.

Davivienda could also add to this wave of flexibility from Colombian banks, an entity that apparently prepares more comfortable rates for its users.

It should be noted that the board of directors Bank of the Republic She is in charge of raising or lowering these interest rates and, since she had to socialize them during the last half-year, she had to trigger them to contain inflation.

This measure, it should be mentioned, will be very beneficial for those whose only source is access to basic necessities through the use of credit cards.

Earlier today, Bancolombia announced that it would lower interest rates for 46% to 25% annual cash flow of 1.3 million of their credit cards, almost half. This is a measure that will be adopted as of Friday March 10.

This, to keep in mind, will apply to purchases made with credit cards Classic Visa, Classic Mastercard, American Express Blue, Joven Mastercard and Ideal Mastercardwhich means that customers who use some of these cards will have an effective annual interest rate of 25%, which is well below the current maximum rate of 46% effective annual rate.

In this sense, Bancolombia has clarified that it is a benefit that will be applied to customers who have a quota of up to 3.9 million pesos, and that it represents the 50% of all Bancolombia credit cards.

“We have listened to people’s needs and, being aware of the reality of the country, we have made it a priority to take care of the financial well-being of Colombians. This is how our goal materializes,” he said. Juan Carlos Mora, bank president.

President Mora added that this measure aims to ensure that each person has the conditions they deem necessary to live with enough money.

“We have evolved in the design of our products based on the wellness concept and in responsible advice that allows us to achieve a healthy balance between people’s needs and their financial health,” Mora added.

According to some analysts and panelists from snail radio, This is an unprecedented step in which a bank cuts its interest rates by almost half, becoming a highly competitive move that sets the stage for other banks to take similar action, and especially over the course of such a year. complex for finances like 2023.