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Colombia at inflation and growth nirvana

Friday, September 12, 2014

Colombia has achieved a policy “nirvana” of on-target inflation and sustainable economic growth with interest rates at their neutral level, central bank co-director Carlos Gustavo Cano said.

Five months of monetary tightening have taken Colombia’s policy rate to the level at which it neither boosts nor curbs demand, he added.

“When you have an economy growing at its potential rate and inflation on target, you put the plane on autopilot and let it go at cruise speed," Cano said.

Source: Bloomberg