Colombia cuts rates of counter economic slowdown

Colombia unexpectedly cut its key interest rate on Friday to counter a slowdown in Latin America's fourth-largest economy due to global uncertainty and weaker domestic demand.

Colombia's central bank cut the lending rate a quarter of a point to 4.50 percent - surprising economists - in a bid to boost 2013 growth amid weakness in the Andean nation's industrial sector and exports.

Having kept rates on hold the past two months, Colombia joined other Latin American countries such as Brazil that have cut borrowing costs to shield their domestic economies from slack demand overseas.

Source: Reuters