Economics

Colombia Cuts Interest Rate to Record Low in Split Decision

  • Central bank lowers rate half a percentage point to 2.75%
  • Board split with two policy makers arguing for a smaller cut

Pedestrians pass in front of the Central Bank of Colombia in Bogota, Colombia.

Photographer: Ivan Valencia/Bloomberg
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Colombia cut its key interest rate to a record low on Friday to combat a slump that the finance ministry forecasts will be the deepest in the nation’s history.

The central bank cut the rate by half a percentage point for a third straight month, to 2.75%. The decision was in line with expectations. Five policy makers voted for the move, while two argued for a more modest cut of a quarter percentage point.