in ,

Colombia holds interest rate at 5.25%

Colombia’s central bank has kept the interest rate at 5.25% for the second month in a row as worries of inflation eased, the bank announced Monday.

The decision suggests the bank’s consistent interest rate hikes over the past year have calmed inflation amid strong consumer credit, Reuters news agency reported.

The bank’s seven members unanimously voted to maintain the rate, meeting the projections of Reuters analysts.

“Inflation expectations have started to fall again and we expect that they will continue to move toward the mid point of the target range,” Central Bank chief Jose Dario Uribe told reporters.

The bank reported slightly negative growth in Europe and slow growth in the United States, the high price of Colombia’s oil and export commodities, and “boyant public demand” for both household consumption and investment as key factors in its decision.

“Credit growth to households remains high,” the bank reported, “indicating that households have significantly increased their level of indebtedness.”

The average core inflation measure remained at 3%, while Colombia’s economy is expected to grow between 4% and 6% in 2012.

The bank will also exentend a policy of purchasing at least $20 million a day until November 2, to prevent excessive growth of the peso.

The Colombian economy grew by 5.9% in 2011, according to the government statistics agency DANE.

Since you’re here …

… we have a small favour to ask. More people are reading the Today Colombia than ever but advertising revenues across the media are falling fast. And unlike many news organizations, we haven’t put up a paywall – we want to keep our site as open as we can. So you can see why we need to ask for your help. Updating reports on Today Colombia takes a lot of time, money and hard work. But we do it because we believe our reports matter.
If everyone who reads Today Colombia, who likes it, helps to support it by clicking our ads, our future would be much more secure. Do you part, click on an ad today.

Written by Rico


"Rico" is the crazy mind behind the Q media websites, a series of onlinemagazines that includes Rico brings his special kind of savvy to online marketing. His websites are engaging, provocative, informative and sometimes off the wall, where you either like or you leave it. The same goes for him, like him or leave him.There is no middle ground. No compromises, only a passion to present reality as he sees it!