Colombia holds interest rate steady at 3%

Colombia’s central bank held its benchmark interest rate for a seventh straight month at its monetary policy meeting Friday, citing low inflationary readings and a strong economic outlook.

The central bank’s decision to keep the rate at 3% was widely expected by the market, with seven analysts surveyed by Dow Jones Newswires projecting such an outcome.

The bank also said its inflation target range for next year is 2% to 4%, the same target range it set for 2010. Prices through the 12 months through October stood at 2.33%.

In terms of gross domestic product activity, the bank reaffirmed its 2011 forecast of 4.5% economic growth. On the currency front, bank Chairman Jose Dario Uribe said the bank’s decision to buy $20 million daily to curb the peso’s appreciation has been widely successful.

(Darcy Crowe, Dow Jones)

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