Colombia Raises Rates

Meanwhile, Colombia’s Central Bank raised its benchmark overnight lending rate by 25 basis points to 8.25%, in line with market expectations. Accelerating growth and rising prices have prompted the monetary authorities to raise interest rates from 7.50% since the end of last year and up from 6% as at April last year. Figures released on Friday by national statistics agency DANE showed economic growth accelerated to 7.97% in the final quarter of the year from 7.7% in the third quarter and from 5.41% in the first quarter. Growth for the year was 6.80% compared with 4.72% in 2005.