Economic news

Colombia central bank will raise rate to 11%

2022.10.21 13:59



Colombia central bank will raise rate to 11%

Budrigannews.com – Colombia’s central bank board will raise the benchmark interest rate at its meeting next week, which is likely its penultimate increase in a cycle meant to counteract inflation, analysts said in a poll on Friday.

Twelve of 14 analysts surveyed said the seven-member board will increase borrowing costs by 100 basis points to 11%, while one analyst predicted a 75 basis point raise and another projected a 50 basis points uptick.

If the majority prediction is met, it would be the highest rate since July 2001.

“Observed inflation and the expectations continue to rise, economic activity is showing robust rates of expansion and during the year so far the labor market has closed its gap compared to pre-pandemic levels,” said a report from investment holding Corficolombiana.

The firm expects the board to maintain considerable but gradual increases to send a message that they are committed to the medium-term inflation target.

Inflation hit 11.44% in September, nearly four times the bank’s long-term 3% target. Analysts have said inflation will not fall to the target until beyond 2023.

The bank has increased the rate by 825 basis points since the start of this cycle in September 2021.

The bank will likely make its last increase, of 50 basis points, in December, those polled said.

Finance Minister Jose Antonio Ocampo, who represents the government on the board, has said high inflation is a supply-side problem that will not be fixed just by hiking interest rates, telling a forum on Thursday raising rates does “very little or nothing”.

But Ocampo acknowledged it would be difficult not to raise costs in tandem with other central banks.

“It’s very difficult not to follow international decisions,” he said.



Source link

Colombia central bank will raise rate to 11%

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,594.42 0.59%
ethereum
Ethereum (ETH) $ 3,357.93 0.46%
tether
Tether (USDT) $ 1.00 0.00%
solana
Solana (SOL) $ 258.56 0.49%
bnb
BNB (BNB) $ 671.90 6.81%
xrp
XRP (XRP) $ 1.55 12.05%
dogecoin
Dogecoin (DOGE) $ 0.459533 17.04%
cardano
Cardano (ADA) $ 1.10 27.85%
usd-coin
USDC (USDC) $ 1.00 0.01%
staked-ether
Lido Staked Ether (STETH) $ 3,368.60 0.17%
tron
TRON (TRX) $ 0.209582 5.41%
avalanche-2
Avalanche (AVAX) $ 43.08 19.72%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 7.90%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,962.18 0.97%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,259.33 0.66%
the-open-network
Toncoin (TON) $ 5.64 2.44%
stellar
Stellar (XLM) $ 0.433487 54.70%
polkadot
Polkadot (DOT) $ 7.73 26.47%
chainlink
Chainlink (LINK) $ 17.12 11.91%
bitcoin-cash
Bitcoin Cash (BCH) $ 531.66 7.74%
sui
Sui (SUI) $ 3.61 1.29%
weth
WETH (WETH) $ 3,346.01 0.88%
pepe
Pepe (PEPE) $ 0.000021 1.47%
leo-token
LEO Token (LEO) $ 8.56 2.89%
near
NEAR Protocol (NEAR) $ 6.41 12.54%
litecoin
Litecoin (LTC) $ 101.79 13.41%
aptos
Aptos (APT) $ 12.80 7.04%
uniswap
Uniswap (UNI) $ 10.57 12.77%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,524.35 0.66%
hedera-hashgraph
Hedera (HBAR) $ 0.149328 13.52%
internet-computer
Internet Computer (ICP) $ 11.23 17.50%
crypto-com-chain
Cronos (CRO) $ 0.1915 0.42%
usds
USDS (USDS) $ 0.998489 0.35%
ethereum-classic
Ethereum Classic (ETC) $ 29.55 5.29%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.543169 18.03%
render-token
Render (RENDER) $ 7.98 8.82%
kaspa
Kaspa (KAS) $ 0.160919 6.91%
bittensor
Bittensor (TAO) $ 532.73 6.09%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.03%
bonk
Bonk (BONK) $ 0.00005 1.95%
vechain
VeChain (VET) $ 0.046173 41.40%
whitebit
WhiteBIT Coin (WBT) $ 24.60 0.93%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.35 6.99%
mantra-dao
MANTRA (OM) $ 3.80 4.64%
dai
Dai (DAI) $ 1.00 0.06%
arbitrum
Arbitrum (ARB) $ 0.832421 6.10%
dogwifcoin
dogwifhat (WIF) $ 3.39 2.90%
blockstack
Stacks (STX) $ 2.09 7.77%
cosmos
Cosmos Hub (ATOM) $ 8.02 22.70%
filecoin
Filecoin (FIL) $ 5.14 11.02%