Colombia central bank cuts benchmark rate to 10.75%, raises growth outlook
2024.07.31 14:49
By Nelson Bocanegra
BOGOTA (Reuters) – Colombia’s central bank cut the benchmark interest rate by 50 basis points to 10.75% on Wednesday, its sixth cut since December, as the entity’s technical team raised its growth outlook for the year.
The decision was backed by five of the seven-member board. Two of the board members pushed for a cut of 75 basis points, the central bank said in a statement.
The decision was inline with market expectations. All 22 analysts quizzed in a Reuters poll last week said they expected the board to vote to cut the cost of money to 10.75%, down from 11.25%, taking the benchmark interest rate to its lowest since 2022.
The decision followed an earlier unanimous vote from the U.S. Federal reserve to keep its benchmark overnight interest rate in the 5.25%-5.50% range, citing “elevated” inflation.
The technical team of Colombia’s central bank on Wednesday revised its growth outlook for the year to 1.8%, up from 1.4% previously, the bank said in a statement.
