Colombia points to inflows in rate hike surprise

Colombia points to inflows in rate hike surprise

Economy & Policy

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.

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