Economics
Colombia Shocks Traders With Smaller-Than-Expected Rate Increase to 5%
- Central bank hiked key rate by 1 percentage point to 5%
- Politicians have criticized the bank ahead of May election
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Colombia surprised traders and economists with a smaller-than-expected interest rate increase after the central bank was criticized by senior politicians.
The bank lifted its key rate by one percentage point to 5%, governor Leonardo Villar told reporters Thursday. Analysts had expected a bigger increase given recent inflation shocks and an economy that is now operating close to full capacity.