April 28, 2014
Colombia’s central bank jolted analysts on Friday with a surprise 25bp interest rate increase, citing increased capital inflows among the factors for the hike. Tightening spreads and rising currencies across emerging markets were particularly accentuated in Colombia, particularly in sovereign debt, as inflows rose, BanRep said. The bank also pointed to positive indicators on domestic growth and inflation, as well as signs of a global economic recovery in its decision to tighten monetary policy.
Monetary Policy: BanRep raises interest rates by 25bp, to 3.5%