Bank of the Republic of Colombia — Rate Cut Review
January 28, 2013
Colombia’s central bank intervention interest rate was cut for a third straight time and the fifth time in seven months. The rate is now at 4.0%, down from 5.25% from February 2012 through July 2012. The rate had previously been raised from 3.0% prior to February 2011. The current easing trend has happened against the backdrop of falling inflation and and deficient economic growth. Officials at the bank expect GDP to rise around 4.0% this year, about a percentage point less than the estimated trend of potential GDP. On-year CPI inflation in December was 2.44%, down from 2.77% in November. Today’s vote was not unanimous among the seven policymakers. 25-basis point reduction were also implemented last year in July, August, November and December.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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