Central Bank has little room to vary interest rates and bands

María José Herrera, Cathay Bank official, attended yesterday Fancy Gomez. The announcement made this month the central bank may influence interests that are paying savers and borrowers. | JORGE ARCE

Later his month the Central Bank will announce economic projections and fiscal policy for 2014. However, experts agree that the country’s fiscal situation, international markets and the pending election live little room for margin in setting interest and exchange rates. At present the economy is seen as having slow growth with inflation under control. Ideally interest rates should be cut, but this may be unworkable as rates are increasing in the world market. The government’s need to borrow and fund deficit spending poses a risk of crowding out private firms in the liquidity market.

Original Article in La Nacion