Colombia’s Central Bank Interest Rate Sliced 25 Basis Points to to 5.5% by 6-1 Vote

July 28, 2017

The Bank of the Republic of Colombia implemented its sixth interest rate reduction of 2017 following cuts of 25 basis point in February, March and May and of 50 bps in April and June. A released statement speaks of weak domestic demand and notes that both total and core inflation slowed in June, although remaining above the central 3% objective. Noting “uncertainty about the pace of convergence of inflation to its 3.0% target and that indexation mechanisms and the persistence of inflation continue to be reflected on core inflation indicators, which exceed the inflation target (3.0%),” the statement nonetheless asserts that the “current level of the real policy interest rate ex-ante is contractionary.”

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.”

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