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)

Related posts

Colombia focuses on Asia as it seeks to diversify trade relations

Minimum wage in Colombia up 9.5% in 2025

Colombia’s congress sinks Petro’s budget finance bill