Colombia all set to lift key rate to most since 1999



Colombia is forecast to extend its biggest-ever series of interest rate rises to curb inflation that is defying a regional downward trend.
The central bank will lift its policy rate one percentage point to 13%, its highest level since 1999, according to 16 of 28 economists surveyed by Bloomberg. The rest expect a smaller move, of half or three-quarters of a percentage point.
At the same time, policymakers are fretting about a likely sharp slowdown in economic activity, as higher interest rates curb consumer demand. The bank forecasts growth of 0.5% this year, from 8% in 2022.
The central bank got some relief from currency markets in recent weeks, as the peso pared losses after diving
between June and November.
The currency has rallied 7.5% this year, the most among more than 140 currencies tracked by Bloomberg.

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