Colombia’s central bank decided Friday to leave the record-low benchmark interest rate unchanged for a fourth straight month, in an attempt to boost the economy’s recovery.
A Bloomberg survey of 34 economists predicted that policy makers will hold the the rate at its current 3.5% until the third quarter.
Inflation is still within the 2010 target of between 2 and 4%, allowing the bank to keep interest rates low.
According to the central bank’s seven-member board, economic growth, although improving, remains “weak.”
“The outlook is bright but not brilliant,” said Daniel Nino, head of research at Bancolombia SA.
“They’re waiting to see if the recovery gains momentum. Raising interest rates not only creates exchange rate problems, because it attracts dollars, but also affects still incipient domestic demand,” he added.