Colombia: Central Bank stays put in October
October 25, 2013
The Central Bank (BanRep) maintained its reference interest rate unchanged at 3.25% at its most recent monetary policy meeting, which took place on 25 October. The wide majority of LatinFocus Consensus Forecast panelists had expected the Bank to make this decision. The key policy rate, which has been at the current level since March 2013, is the lowest level since February 2011.
BanRep stated that growth in advanced economies is recovering moderately, whereas economic activity slowed in emerging markets. The Bank noted that domestic growth in the third quarter expanded faster than in the first half of the year, mainly due to healthy growth in investment. In terms of price developments, the Central Bank stated that September's annual inflation was on par with the previous month and that inflation expectations in the next twelve months remain well anchored within the Bank's tolerance margin of plus/minus 1.0 percentage points around its 3.0% target. The next policy meeting is scheduled for 29 November.
LatinFocus Consensus Forecast panelists see the policy rate at 3.23% at the end of 2013. Panelists expect the policy rate to end next year at 4.26%.