Colombia’s central bank cuts its benchmark interest rate for the third time this year to provide a further boost to the economy as it continues its countercyclical monetary policy stance.
The Central Bank of Colombia (BDBR) cut its policy rate by another 50 basis points to 2.75 percent and has now cut it by 150 points this year following cuts in March and April.
In a relatively brief statement, the central bank said the decision took into account a continued decline in inflation expectations due to weak demand, downward revisions of domestic and international growth and an improvement in financing conditions.
Colombia’s inflation rate fell to 3.5 percent in April from 3.86 percent in March.
The central bank said five of its board members agreed on the 50-point rate cut while the other two members voted to reduce the interest rate by 25 points.
