Colombia's central bank kept its rate on hold at 3.00%, in line with market expectations. The bank says inflation will end 2011 at 3.00% or lower, higher than its previous forecast of about 2.00%. Celfin, however, says inflation is on the low side of its target. Goldman Sachs expects the central bank to initiate a rate normalization cycle sometime during H2 2011 and to push the policy rate to 4.00% by end 2011. "However, if the real business cycle loses momentum in the quarters ahead and/or the currency appreciation pressures intensify we do not rule out that the policy rate would remain unchanged all the way until 2012," it adds.