Colombia shocks markets with 100bp rates hike
First tightening in nearly three years comes after government announces 23% rise in minimum wage
The board of the Central Bank of Colombia (Banrep) raised its policy rate by 100 basis points on January 30, as it moved to counter inflationary pressures stemming from new fiscal measures.
Four of Banrep’s seven members voted for the decision, which exceeded market expectations. Two members voted for a half-point rise and one member voted to hold.
“The majority decision adopted by the board of directors aims to return inflation to a downward trajectory,” the board said in a statement.
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