Colombian Central Bank Rate Kept at 4.75% as Expected
December 16, 2011
Speaking about downside risks stemming from Europe and predicting that Colombian CPI inflation will fall below 4% this year on a December-over-December basis, the authorities at the Central Bank of the Republic of Colombia did not raise its key intervention rate for the fourth time in five meetings. The exception was a 25-basis point hike to 4.75% on November 25. Previously, six straight 25-bp increases were administered from February to July of this year. Colombia is still experiencing ample growth that probably surpassed 6.0% last quarter, and domestic credit expansion has been rapid. The last time that policy was eased was in April 2010, when the key rate was reduced by 50 basis points to 3.0%.
Copyright 2011, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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