Colombian Central Banker Sees Rates on Hold Through 1Q 2014

Colombia should hold its policy rate at its current “expansionary” level of 3.25 percent for the next six to nine months to ensure that economic growth returns to its full potential, central bank co-director Carlos Gustavo Cano said.

The economy is growing less than full capacity, with low inflation expectations, industry contracting and an “uncertain” outlook for the world economy, Cano said in a interview by phone today. All of that points to a need to keep interest rates at a level that stimulates growth, he said.