European Central Bank cuts interest rates as inflation improves

The European Central Bank (ECB) announced today a reduction in interest rates to 3.65%, the largest drop of the year, amid an improvement in inflation levels close to the 2% target and economic stagnation in the eurozone.

The ECB's decision comes in a global context of economic slowdown. The IMF projects that global growth will remain at 3.2% this year and next, below the historical average, due to high interest rates to combat inflation, the withdrawal of fiscal stimulus and low productivity growth.

However, the risks to growth are balanced and a soft landing is in sight. Inflation is falling faster than expected in most regions as supply problems dissipate and restrictive monetary policies take effect.

Example: European Bank

Mexican peso leads gains against the dollar

The Mexican peso has recovered and is now the currency with the greatest gains against the US dollar. This is partly due to the fact that the market had already discounted the approval of the judicial reform in Mexico.

The US Federal Reserve is keeping interest rates high in its fight against inflation, which is putting upward pressure on the dollar. But expectations are that when the Fed begins to lower rates, the dollar will become cheaper against currencies such as the peso.

In Colombia, the dollar closed on Tuesday at a low of $3,888, a decrease of $9 compared to the previous close.

Experts project that the currency will remain between $3,800 and $4,000 in the second week of May.

Mexican Currency

Sustainability, a driver of change for companies

In a world with unprecedented challenges, companies face the growing demand to be agents of change towards more sustainable business models. The UN Global Compact proposes an action plan to guide companies on this path.

Being a sustainable company implies understanding what steps to take to actively contribute to the Sustainable Development Goals of the 2030 Agenda. Joining this initiative allows companies to be part of the business revolution towards a more equitable and resilient future.