Interest rates continue to fall and make card purchases more affordable for Christmas

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The Financial Superintendence of Colombia confirmed that the interest rate will continue to fall in December, so the banks They cannot pay more than 37.56% for interest; it represents a drop of 72 basis points compared to the rate of force in November 2023, which is 38.28%.

With this drop, December will be the eighth month where the Financial Superintendence confirms the reduction of the usura rate.

However, even as the top rate continues to fall, the pace has slowed. The reduction is for December showed a smaller decrease than in November, a month in which it was reduced by 101 basis points compared to October. Last month, the interest rate was reduced by 225 points.

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Since April of this year, the date on which the financial authority began to cut interest rates for banks, cut 953 basis points over the past eight months. With this new cut, the interest rate reached the level of October a year ago when it was confirmed at 36.91%.

It should be noted that the reduction of interest on cards It has been supported since May by a rate war between bankswhich drives the use of plastics.

Interest rates have been declining in recent months despite the fact that the Bank of the Republic did not give signs of a cut for the last meeting of the Board of Directors of the Issuer this year which takes place in mid-December.

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The Bank of the Republic decided to maintain the high rate, as inflation remains far from its target range of 3%this despite the fact that it received pressure from various sectors, including the National Government, to lower rates in the face of the risk of economic recession experienced in the country.

This Thursday, during the second meeting of the labor and salary consultation table to define the minimum next year, The Ministry of Labor, the labor unions and the businessmen reached an agreement to request the Issuer to lower the interest.