Colombia Keeps Rates Intact

Colombia’s central bank kept its monetary policy rate at 3.00%, in line with market expectations. The bank says annual inflation came in at 2.25% in June, 18bp higher than April, but lower than it expected. Morgan Stanley 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 begin in Q1 2011.