Colombia surprises markets and slows easing cycle
Quarter point cut a “strong message” of independence by central bank, analysts say
The Central Bank of Colombia (Banrep) reduced its policy rate by 25 basis points on December 20 – thus surprising the markets, which had been expecting a larger cut.
Five of the board’s seven members voted for the decision, with one of the two dissenters opting for a 50bp cut and the other wanting a 75bp reduction.
Only one of 30 analysts polled by Bloomberg correctly forecast the cut. All the others had expected the central bank, which made 50bp cuts in each of its six previous meetings, to
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