Central Bank of the Republic of Colombia
August 1, 2014
Colombian monetary policy continues to be normalized. Following 25-basis point benchmark central bank rates from a base of 3.25% on April 25, May 31, and June 25, a fourth tightening was engineered on July 31. This puts the key interest rate up a total of 100 basis points to 4.25%. The Colombian economy is expanding at a healthy pace. Officials anticipate growth of 4.3% last quarter and 5% for 2014 as a whole. Normalization is needed to keep inflation and expected inflation from exceeding the top of the central bank’s 2-4% target range.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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