Colombia’s central bank is expected to make no change to interest rates in its monetary policy meeting Friday.
Citigroup predicts that the interest rate will remain at 3.5%, following the surprise 0.5% cut in November which took the rate to a record low. This low rate is expected to remain in place for a few months in order to stimulate the economy.
“Although inflation dropped even further in November, opening room for additional monetary policy easing, we believe that the complicated inflation dynamics for 2010 will prevent the bank from further cuts,” Citigroup said in its report.