Colombia eyes two rate cuts before year-end, finance minister says

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Colombia eyes two rate cuts before year-end, finance minister says

© Reuters. FILE PHOTO: Colombian Finance Minister Ricardo Bonilla, speaks during a press conference in Bogota, Colombia May 5, 2023. REUTERS/Luisa Gonzalez/File photo

"The expectation is for another cut in December," Bonilla told Reuters on the sidelines of the World Bank and International Monetary Fund meetings in Marrakech. The central bank held the key rate steady at 13.25% in September for the third time in a row, citing stubborn inflation. Bonilla said inflation was set to reach 9.2% at the end of 2023.Two members voted for a borrowing cost decrease at the board's September meeting, though the bank does not reveal how each member voted. Five members voted to keep borrowing costs stable at 13.25%.

Colombia's consumer prices rose by 0.54% in September, taking cumulative 12-month price growth to 10.99%. That was down from highs in 2022, but still more than double the central bank's long-term target of 3%.

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Colombia eyes two key rate cuts before year-end, finance minister saysColombia eyes two key rate cuts before year-end, finance minister says
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