LONDON: Colombia is likely to start "discussions" in November about cutting its 7.75 percent interest rate, finance minister Mauricio Cardenas said on Wednesday.
Cardenas also said he was hoping to include the issue of taxing bond portfolios into a wider tax reform bill. Cardenas, who sits on the central bank board, had earlier told the Colombia Business Forum event in London that easing inflation would likely allow interest rates to fall.
Speaking to reporters on the sidelines of the conference, he said: "It is likely the discussion on cutting rates will begin in November." He also said he hoped for talks with Congress over a key tax reform and in order to include the issue of taxing bond portfolios in the wider bill.
Many fear that a tax reform seen as critical to resolving the country's budget woes will run into trouble in Congress because of the tough political environment. The reform envisages raising value-added tax but many fear it will choke growth which is already at a six-year low.
Many of Colombia's problems stem from the fall in global oil prices. More recently the electorate voted against a hard won peace deal with FARC Marxist rebels.
Cardenas predicted that Brent crude futures would stay around $50 per barrel next year before rising to around $60 for the rest of the decade.
"We think oil prices are going to go up, but not making an assumption that this will happen anytime soon," he added.
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