Colombia | Banrep holds rates and waits for new information on international markets

Summary

The central bank decided unanimously to hold interest rates at 4.5% for the third consecutive month, as anticipated by BBVA Research. The decision was mainly driven by a slowdown in developed economies (excepting United States), an increasing risk aversion in emerging economies, a deterioration in the terms of trade which affects the national income growth, and a core inflation that remains below the 3% target. They also estimate that GDP growth will likely reach 5.0% in 2014. Finally, BBVA Research continues to project that the next rate hike will be in May and that the intervention rate will reach 5.0% by the end of 2015.

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