Colombia central bank cuts rate by enexpected margin

Colombia’s central bank on Friday slashed its key interest rate by the most since 2013.

The overnight lending rate was cut by 0.5 percentage points to 6.5 per cent and market the third cut this year. Economists had forecast a smaller rate cut of 0.25 percentage points.

The move comes as leading economic indicators suggest that Latin America’s fourth-largest economy will continue to struggle in the near term and as inflation continues to slow.

Source: Financial Times