Monetary Tightening Paused in Colombia
August 22, 2011
In the face of intensifying global uncertainties, officials at the Central Bank of Colombia retained a 4.5% key overnight interest rate. Most analysts were looking for a seventh consecutive monthly tightening. The cyclical low of 3.0% had been maintained from end-April 2010 until an initial hike this past February, which was followed with increases in March, April, May, June and July — each by 25 basis points. Colombia has experienced solid growth led by consumption and other elements of domestic demand. CPI inflation, however, has risen about a percentage point over the past year and now exceeds 3.0%.
Copyright 2011, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Colombia
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