In the latest clash amid tensions with Banco de la República over rate hikes, Colombia's Finance Minister Germán Ávila held a monetary policy forum without central bank Governor Leonardo Villar—who declined over timing concerns—and slammed the recent 200 basis-point increase for curbing 2026 growth to 2.6% while boosting public debt interest by $1.8 trillion.
The Ministry of Finance's forum at the Centro Cultural Gabriel García Márquez on April 21 followed Ávila's walkout from the central bank's March 31 board meeting and a heated April 15 oversight debate with Villar.
Villar cited 'considerations about its timing and the context' in declining Ávila's invitation. The minister, a vocal critic of the rate-hiking cycle, estimated the 200 basis-point move—bringing rates to 11.25%—would shave 0.36 points off 2026 GDP growth, from 2.9% to 2.6%. 'We are dissatisfied... 2.6% is insufficient,' Ávila said, adding it would raise debt interest payments by $1.8 trillion.
Challenging the bank's decisions, Ávila questioned if economics is an 'exact or social science' and noted the political weight of monetary policy. Guests included Daniela Gabor (University of London), former Ecuadorian President Rafael Correa, Isabella Weber (University of Massachusetts Amherst), and Matías Vernengo (Bucknell University).
