The Colombian economy is recovering faster than expected while the resurgence in economic activity is not spawning inflationary pressures, the Central Bank said Friday in the minutes from its last board meeting.
“The information received in the last few weeks indicates that the economy is recovering more rapidly than expected without generating inflationary pressures,” the board said in its minutes.
“The indicators that are available show that consumption is recovering at a pace that is faster than what had been predicted especially in the case of durable goods,” according to the meeting minutes.
The central bank’s board cut its key rate on April 30 by 50 basis points, to 3%, as low inflation allowed for more expansive monetary policy. The bank started its cycle of rate cuts in December 2008, when the rate stood at 10%.
(Darcy Crowe, Dow Jones)