Two South American Central Banks Cut Key Rates
March 20, 2009
The Bank of Mexico cut its key interest rate by a greater-than-expected 75 basis points to 6.75 and released a statement blaming a worsening global economic crisis. This was the second reduction this year following one of 50 basis points in January. The central bank rate is now only about a half-percentage point above on-year inflation.
Colombia’s central bank, the Bank of the Republic, reduced its interest rate by 100 basis points to 7%, matching the modal street forecast but has not yet posted a statement on its website explaining its latest thinking. On-year inflation in Colombia is at 6.5%.
Copyright 2009 Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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