The decision by Colombia’s central bank to hike interest rates by more than expected was a move partly designed to clamp down on a recent surge in inflation but also to maintain its credibility in the markets. With inflation set to remain well above target in the short term and policymakers worried about further falls in the peso, we have pencilled in another 50bp of rate hikes (to 5.75%) over the next few months.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services