Colombia Leaves Rates on Hold


At its March 21st, 2014 meeting, Central Bank of Colombia left the benchmark interest rate steady at 3.25 percent and decided to extend its dollar purchase program, and buy up to $1 billion through June.

The central bank the left borrowing cost unchanged for the twelfth straight meeting, as it considers interest rates remain at levels that stimulate aggregate spending and will hopefully allow the 2014 GDP to approach the productive capacity of the economy as inflation converges towards the 3 percent target. 

In the fourth quarter of 2013, the GDP advanced 4.9 percent over the same period last year, slightly lower than a 5.4 percent expansion in the previous quarter. For the full 2013, it was 4.3 percent, up from 4 percent in 2012. 

Annual inflation rate has been below the 3 percent target for 16 consecutive months and was recorded at 2.32 percent in February of 2014.

Joana Taborda | joana.taborda@tradingeconomics.com
3/21/2014 7:01:34 PM