Colombia Surprises With Half-Point Rate Cut Citing Low CPI

Colombia’s central bank unexpectedly accelerated the pace of interest rate cuts, citing weak growth, below-target inflation and the slow transmission of previous stimulus.

Banco de la Republica cut its benchmark rate by a half point to 3.25 percent, surprising all 32 analysts surveyed by Bloomberg. Twenty-seven analysts forecast a quarter point cut while five expected no change. The bank cut the overnight rate by a quarter point at each of its last four meetings.