Colombia Delivers First Rate Cut, Cautious About Next Moves
- With 25-point cut, it joins key regional peers easing policy
- Colombia has the fastest inflation among Latin American peers
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Colombia delivered its first interest rate cut in three years, lowering borrowing costs by 25 basis points as signs of a faltering economy overtake inflation concerns.
The central bank reduced its benchmark rate to 13%, Governor Leonardo Villar told reporters in Bogota after Tuesday’s policy meeting. The decision was backed by five of the bank’s seven board members, with two voting to keep the rate at 13.25%. Twelve of 22 economists surveyed by Bloomberg correctly forecast the move, while the rest expected interest rates to remain unchanged.