Colombia Raises Rate

Colombia’s central bank has raised its rate by 25bp, to 3.75%, in line with the majority of analysts’ expectations. “The Bank had to make this increase with the rains still falling – after all they can always slowdown later on,” says Celfin. Some analysts had said a pause could have been possible. “A pause could be justified by the better than expected February and March CPI prints and recent improvement in inflation data,” says Goldman Sachs. RBC had said before the announcement that 100bp in hikes could take place before end of Q3 2011.