Colombia Not Seen Hiking Rates

Colombia’s central bank is expected to keep its monetary policy rate at 3.5% today. Morgan Stanley says the bank does not appear to be in a hurry to hike rates as inflation data is still benign. “We suspect that recovery may prove stronger [than expected] and the central bank would shift into tightening monetary policy in 2H10,” the shop says. Colombia’s Interbolsa also sees no change in policy. “We see the central bank expects a slow recovery and is more afraid of a sudden increase in inflation than another slowdown in the economy,” it says. Annual inflation as of February was 2.09%, the low end of a 2.0%-4.0% target range, according to the central bank.