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Bogotá. – The Central Bank of Colombia kept its interest rate unchanged at 4.25% Friday, a decision consistent with what the market was waiting for, as there are risks that could drive up inflation . 19659002] The stability of the benchmark rate – which counted with the unanimous vote of the council of seven body members – took place after the issuing bank lowered it by a quarter of a percentage point when its last meeting, in April. In a Reuters poll last week, the 18 analysts studied the anticipated stability of the cost of money, which decision most of them would extend for the rest of the year.
The bank's board of directors pondered "some risks that could push inflation upward. One of them is a rebound in food prices that affects expectations and delays the convergence of inflation to 3%. "
The outgoing co-director of the Central Bank Adolfo Meisel said in an interview with Reuters that the impact of the rebound in oil prices on inflation, which led to a rise in gasoline at the local level, will be one of the main factors of inflation and future movements of the economy. "Similarly, a stronger than expected depreciation of the peso that is transferred to domestic prices.Once, uncertainty about these factors is high," said the director of the transmitter, Juan José Echavarría, by reading a press release.
Outgoing co-director Adolfo Meisel said in an interview with Reuters that the impact of the rebound of the oil price on inflation, which led to an increase in gasoline at the local level, will be one of the main factors of inflation and future movements of the interest rate.
Meanwhile, the bank remained unchanged. its projection of economic growth for this year by 2.7%.
"On the one hand, it is expected that the excess production capacity would increase in 2018. On the other hand, if the price of oil remains at current levels by an extended period or the increasing trend of confidence persist, the dynamics of aggregate demand could be larger than expected, "he concluded
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