Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Colombia central bank holds rate, ending seven months of reductions

10/30/2020 | 01:51pm EST

BOGOTA, Oct 30 (Reuters) - Colombia's central bank unanimously held its benchmark interest rate steady at 1.75% on Friday, meeting market expectations and ending seven months of rate cuts meant to buoy the economy amid a coronavirus lockdown.

All 13 analysts in a Reuters survey this month forecast the seven-member board would hold the rate at 1.75%, as consumer prices stop falling and consumption normalizes.

"It was considered prudent to maintain the current position while waiting for new information on the shocks and the evolution of the variables which affect policy reaction," the central bank's board said in a statement.

"The relaxation of isolation measures, the fiscal support for households and companies, lower interest rates and the ample liquidity provided by the central bank are facilitating conditions for the recovery of economic activity," the board added.

The pause in the rate may continue for several months, board chief Juan Jose Echavarria said during a virtual press conference announcing the decision.

Echavarria said in a separate statement he will not seek re-election and will leave the board when his term expires at the end of this year.

The Colombian government forecasts the economy will contract 5.5% this year because of the pandemic, while the central bank predicts a less optimistic contraction of between 6% and 10%.

The recent rate cuts, which began in March, took borrowing costs to a historic low, but analysts have said monetary policy will now lean toward controlling potential increases in inflation.

Consumer price growth was 0.32% in September, taking 12-month price growth to 1.97%. Both figures were well above market expectations.

Analysts in a Reuters poll this week expect inflation to reach 1.84% at the close of this year, up from the 1.7% predicted in September's poll but well below the long-term target rate of 3%. (Reporting by Nelson Bocanegrea, Oliver Griffin and Julia Symmes Cobb Writing by Julia Symmes Cobb; Editing by Grant McCool and Leslie Adler)


© Reuters 2020
Latest news "Economy & Forex"
03:13aEuropean shares make slight moves on Brexit, stimulus uncertainty
RE
03:11aGood progress being made on Brexit trade deal, British minister says
RE
03:11aOil gains as OPEC+ resumes output cut extension talks after impasse
RE
03:10aOil gains as OPEC+ resumes output cut extension talks after impasse
RE
03:10aFTSE 100 subdued on Brexit worries, lower oil prices
RE
03:06aGrab tells staff it's 'in a position to acquire; after Gojek merger report
RE
03:06aSouth Africa's rand falls as virus fears weigh
RE
03:04aIndian services industry lost some steam in November
RE
02:59aIndia resumes talks with protesting farmers over agriculture reforms
RE
02:56aKenya's private sector activity rises modestly in November - PMI
RE
Latest news "Economy & Forex"