Colombia Monetary Policy Unchanged

Colombia’s Central Bank decided on August 30th to leave the main interest rate unchanged at 3.25 percent. While citing low inflationary pressures and weak economic growth, the Board did not discard a future rate cut.

Colombia’s Central Bank maintained its growth forecast for the second quarter within 2.5 percent and 4.0 percent, with 3.4 percent as more likely figure. Household spending and investment in civil works and buildings probably grew at a higher rate. 

Colombian peso has been devaluated against the US dollar. This trend is expected to continue and boost the tradable sectors of the economy. 

In July, annual inflation rate was recorded at 2.2 percent, below Central Bank estimates. Yet the expectations point to a target of 3 percent.

Colombia Monetary Policy Unchanged

Joana Taborda |
9/2/2013 5:08:34 PM