Colombia Cuts Rate to 4% And Steps Up Daily Dollar Purchases

Colombia cut interest rates to the lowest level in Latin America to boost below-potential economic growth, while increasing daily dollar purchases to curb the peso’s appreciation.

Banco de la Republica, led by bank Governor Jose Dario Uribe, reduced its benchmark interest rate by a quarter point to 4 percent, as forecast by 31 of 33 analysts surveyed by Bloomberg. Two predicted no change. After announcing the decision, Uribe said Colombia will boost daily dollar purchases to at least $30 million and will buy $3 billion between February and May.