Central Bank signals more rate cuts as growth, inflation slow

Colombia’s central bank policy makers
said the “time is right” to keep cutting lending rates and that
the speed of reductions will depend on inflation

The central bank cut its benchmark interest rate for
a second month on Jan. 30 to spur consumer spending and revive a
slumping economy. Policy makers reduced the interbank rate to 9
percent from 9.5 percent, matching the forecast of 29 of 39
economists surveyed by Bloomberg.

A minority of board members sought a “more ambitious” cut
of 100 basis points, the bank said in minutes of the meeting sent
by e-mail today. (Bloomberg)

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