© Reuters. SUBMIT IMAGE: General sight of Colombia’s reserve bank in Bogota, Colombia October 9, 2019. REUTERS/Luisa Gonzalez/File Image
By Nelson Bocanegra and also Carlos Vargas
BOGOTA (Reuters) -Colombia’s reserve bank board increased the benchmark rate of interest by 25 basis indicate 13% on Thursday, as anticipated by many experts that state this might be the last walk, and also updated its financial development projection to 0.84% in 2023.
The choice to raise the price by 25 basis factors was backed by all 7 of the financial institution’s board participants, the reserve bank claimed in a declaration.
A Reuters survey recently located that 23 out of 32 experts anticipate the board participants to trek the price by 25 basis indicate 13%, while the staying 9 projection a 50 basis-point walk, which would certainly take the price to 13.25%.
The rise takes the benchmark price to degrees not seen given that November 1999 and also mirrors current choices from the united state Federal Book and also the European Reserve Bank, which increased prices in the middle of market volatility and also tightening up monetary problems.
The rate of interest remains in “contractive surface,” financial institution board principal Leonardo Villar claimed in an interview, including its existing degree is an action to high degrees of rising cost of living.
Colombia’s 12-month rising cost of living via completion of February struck 13.28%, the greatest given that 1999 and also greater than 4 times the financial institution’s lasting target of 3%.
It is vague if this will certainly be the last price rise, Villar claimed.
” We can not state if we have actually gotten to the price’s optimum factor, that’s a choice that we should check out each conference with the details offered,” he claimed.
Experts anticipate a duration of security long-term numerous months complying with a projection price climb on Thursday prior to the reserve bank starts a down cycle, bringing the expense of cash to 11.5% by the end of this year and also minimizing it even more to 7% by the end of 2024.
The financial institution’s technological group increased the financial development overview for Latin America’s fourth-largest economic climate this year to 0.84%, up from 0.2% formerly, the declaration claimed, however included that financial task remains to be identified by a “considerable stagnation.”
