Speech by the Governor at the 27th Asobancaria Treasury Congress
On Thursday 13 February, in Cartagena, Leonardo Villar discussed the reasons for a cautious approach in monetary policy decisions to control inflation.
Publication Date:
Tuesday, 18 February 2025
08:06
As I have done in some recent presentations, I would like to begin this presentation with a general reflection. Specifically, I would like to reiterate something that may seem obvious to you but is nonetheless important. I am referring to the fact that the main objective assigned to Banco de la República and its Board of Directors by the Constitution is to preserve the purchasing power of the currency in coordination with the general economic policy. This has been implemented by the Board through what is known as the inflation target strategy, aimed at maintaining inflation around 3.0%, with exchange rate flexibility and the short-term interest rate as the main instrument.
