Tag

Banco de la República estimates that GDP grew by just 1.6% in 2017 and maintains “uncertainty over its pace of recovery.”

Food costs, which spiked by 7.22% in 2016, saw the lowest increase this year among major economic cateogories with just a small rise of 1.92% in 2017.

S&P highlighted Colombia’s “diminished policy flexibility” due to “weakened fiscal and external profiles” in its analysis following the move.

An increase over the past month in the recreation prices (up 0.68%) and housing prices (0.30%) helped to push up the overall consumer price index.

“The dynamics of the domestic demand were weaker than expected” in the third quarter, stated the central bank.

The move continues a year-long rate-cutting trend but surprised a market that expected the Banco de la República to leave the rate steady.

The Banco de la Repúblcia said that its decision was impacted by the "weakness in economic activity."

The central bank again expressed concern about economic weakness on top of low domestic demand and low external demand.

The 3.99% rate is 38 basis points below the 4.37% annual inflation seen in May and less than half of the 8.60% rate in June 2016.

The central bank said its decision was based upon “growing weakness of economic activity."