Date: April 29, 2022
News Author(s): Nelson Bocanegra and Carlos Vargas
Photo Credit: Reuters
Source: investing.com
BOGOTA (Reuters) - Colombia's central bank board raised the benchmark interest rate by 100 basis points to 6% on Friday, its highest level in nearly five years, as it continues increases in response to persistent inflation pressures.
The seven-member board was divided on how sharply to increase the rate, with four policymakers backing the 100-point increase and the remainder voting for a sharper 150-point rise.
The bank's technical team also raised its growth projection for the year, to 5% from 4.7%.
Colombia - like many countries - is experiencing high inflation figures because of increasing domestic demand, global supply chains issues and higher fertilizer costs due to the war in Ukraine.
Inflation stood at 8.53% in the 12 months to March, almost triple the 3% central bank target.
"The idea is that inflation will fall during the rest of the year and end the year around 7%, that's approximately where the general market and technical team expectations are," board chief Leonardo Villar said.
He added that the team's revision to the estimate - which currently stands at 4.3% - will be published in its quarterly monetary policy report on Monday.
"The prospects of a faster-than-expected increase in interest rates in the United States and the impact on international prices of Russia's invasion of Ukraine could generate additional inflationary pressures," the board added in a statement.
The rate decision met the expectations of fifteen analysts surveyed in a recent Reuters poll, who agreed the board would hike the rate to 6%, its highest level since May 2017.
Some analysts had predicted the board could opt for a sharper rise because there is no interest rate vote in May.
The increase brings the total uptick in borrowing costs to 425 basis points since September last year.
Inflation is not expected to return to the targeted 3% level within the next two years, bank board member Roberto Steiner said last week, predicting rate rises will continue.
Keywords: sterlinghousetrust.com, Sterling House Trust, SHT
Sterling House Trust is a private trust with a difference. It offers its members an exclusive and reliable platform to access unique opportunities and lifestyle services reserved for the select few. With its team of professional managers Sterling House Trust constantly scans the markets and collaborate with reliable global partners to create a portfolio of carefully curated programmes for its members. Members can access these programmes according to their individual needs, interest and financial capacity. Sterling House Trust is headquartered in Auckland, New Zealand, and has operations based in London, UK.
The Sterling House Trust platform was established with the objective of providing its members, secure access to opportunities across a range of global locations, sectors and services.
Our unique Platform was established within the framework of a trust so that the trust would have oversight and governance over the range of services and its quality. Member protection is a core principle and drive in all that we do. Our trustees ensures that the interests and quality of service provided by the Platform are always maintained at the highest standards.
The trust and its trustees provide robust oversight and is constantly on the move to identify and shortlist select opportunities in the international markets. Likewise, we apply the same stringent standards in identifying and selecting providers and professional partners to join our Platform.
The Sterling House Trust Platform utilises our international footfall and relationships to provide our members with access to a range of international opportunities via our global network which covers a broad range of sectors including:
Asset protection, international property ownership and management, alternative and direct ownership, estate planning, banking services, foreign exchange, card services, alternative investment and lifestyle services.
New Zealand Head Office
31/335 Lincoln Road,
Addington
Christchurch
New Zealand
London Office
14-16 Dowgate Hill,
London,
England EC4R 2SU
