The Colombian central bank’s monthly survey of inflation expectations shows analysts expect the inflation rate for the full-year 2009 to be 3.40%, down from 3.56% expected a month ago.
The 36 analysts polled by the monetary authority predicted that consumer prices on average in September will rise 0.12%, after advancing 0.04% in August.
Central Bank Chairman Jose Dario Uribe recently said he expects inflation will end the year between 3% and 4%. The bank’s official target range at the beginning of this year was between 4.5% and 5.5%.
In 2008, the inflation rate ended at 7.67%, above the bank’s target range of 3.5% to 4.5% for the year. It was the second consecutive year that the bank missed the target.
Analysts see the Colombian peso ending 2009 at COP2,120.58 against the U.S. dollar compared with a closing rate of COP2,254 in 2008.
The peso has appreciated 12% so far this year.
Analysts expect the benchmark interest rate will end the year at an average of 4.42%.
The Colombian central bank has cut rates by 5.5 percentage points since December of last year to 4.5%. Since June, the bank has kept its rate unchanged at 4.5%. (Dow Jones)