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Colombia may cut rates as economy remains weak

Friday, March 22, 2013

Colombia's central bank may cut its benchmark lending rate for a fifth straight month today, taking advantage of benign inflation to encourage consumer and business spending and bolster the sluggish economy.

The seven-member board is likely to reduce the key interest rate a quarter point to 3.50 percent and provide additional stimulus after the economy was hit by lower overseas demand and anemic factory output.

In a survey of 21 economists, 17 expect a cut, while four see the bank holding the rate steady at 3.75 percent.

Source: Reuters