Colombia Seen Keeping Rate On Hold

Colombia’s central bank is expected to keep its monetary policy rate on hold today at 3.00%. Morgan Stanley expects the bank to focus more on current low inflation readings than on rising future inflation risks as economic growth continues to surprise on the upside. It expects the rate to reach 4.25% by the end of the year. Local brokerage Bolsa y Renta also expects rates to be kept on hold today and for hikes to start in Q1 2011.