Colombia Keeps Rate Unchanged

Colombia’s central bank has left the monetary policy rate unchanged at 10.0%, but analysts say easing may be due. “We have been forecasting the beginning of a monetary easing cycle during 1Q2009, but the odds are certainly increasing in favor of the beginning of a rate easing cycle already in December,” says Alberto Ramos of Goldman Sachs. The central bank also raised the inflation target for 2009 to 5.0% from a previously estimated range of 3.0%-3.5%. For 2010, the central bank fixed its inflation target at 4.0% falling to 3.0% in 2011.