Colombia: Central Bank stays put for a second straight month
October 26, 2012
At its latest monetary policy meeting on 26 October, the Central Bank (BanRep) left the reference interest rate unchanged at 4.75%, in a decision widely expected by the market. The move follows on a similar decision adopted in September. According to the Bank, recent figures confirmed the weakness of the global economy in the third quarter. Monetary authorities, however, added that global financial conditions have improved as a result of the coordinated actions of the world's main central banks. At a domestic level, the Bank explained that the global slowdown has affected economic activity throughout a moderation in exports as well as reduced growth in industrial production. BanRep added that, in spite of the various signs of an economic slowdown, growth will continue to be supported by robust domestic demand. Regarding price developments, the Central Bank stated that both current inflation as well as inflation expectations are very close to the Bank's target of 3.0%. Monetary authorities added that the level of credit continues to moderate.