Mexican and Colombian Key Interest Rates Unchanged After August 20th Policy Meetings
August 24, 2010
Mexico’s overnight central bank interest rate was held at 4.5%, the setting since July 2009, as was expected. GDP advanced 7.6% in the year to 2Q10, while CPI inflation had an on-year 3.6% rate of increase in July. A statement from the central bank promised to watch measures of expected inflation and the output gap.
The Colombian Bank of the Republic likewise left its target interest rate at 3.0%, also as was expected. From a peak of 10.0% prior to December 2008, ten reductions were implemented totaling 700 basis points, the most recent coming in early May of this year. On-year CPI inflation and GDP growth stand at 2.2% and 4.3%, while unemployment exceeds 10%.
Copyright Larry Greenberg 2010.
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