Colombian Central Bank Hike
March 30, 2023
The Central Bank of Colombia’s policy interest rate has been lifted by only 25 basis points to 13.0%. Similar to most countries around the world where central banks target inflation, consumer prices in Colombia with a 12-month 13.25% rise is currently running way above the objective, which in Colombia’s case is 3.0%. A year ago, the inflation rate was already at 8.0%, but it was quite low at 1.6% two years ago. In the early months of the Covid pandemic, the rate was slashed from 4.25% to a record low of 1.75%, where it stayed from August 2020 until an initial normalizing move of +25 basis points in September 2021. Today’s increase was smaller than the previous 75-bp increase in January.
Copyright 2023, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Colombia
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