World Economy

Colombia CB Cuts Rate

Colombia CB Cuts RateColombia CB Cuts Rate

Colombia’s central bank extended the deepest series of interest rate cuts since the global financial crisis, and signaled that there may be more to come, as it tries to revive an economy that has been in the doldrums for two years, Bloomberg reported. Five of the seven board members voted to cut borrowing costs 25 basis points to 4.75%, while two voted to leave they key rate unchanged, central bank Governor Juan Jose Echavarria told reporters after the meeting. The decision was forecast by 16 of 33 analysts surveyed by Bloomberg, with the others expecting no change. Output is set to expand at its weakest pace since 2009 this year, as the economy failed to find enough new motors of growth to compensate for the end of the oil and mining boom. The bank has cut its policy rate 3 percentage points since December, as inflation slowed toward its target, after reaching a peak of 9% last year. Growth in the third quarter was lower than the bank had expected, while inflation expectations have dropped, said Andres Langebaek of Banco Davivienda.

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