Colombia’s unexpected rate hold draws fire from president
Policy maintained at 9.25% could mean fewer or no rate cuts in upcoming meetings, analysts say
The Central Bank of Colombia (Banrep) has maintained its policy rate at 9.25%, thereby sparking outrage from the country’s president, who had been calling for looser monetary conditions.
The decision, announced yesterday (July 31), surprised markets. Only four of the 31 economists polled by Bloomberg had correctly predicted the hold, while the remainder had forecast a cut of 25 basis points.
Four of Banrep’s seven board of directors voted for the hold, while two supported a 50bp cut and one wanted
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