BOGOTA, (Reuters) – Colombia’s central bank cut its benchmark rate by a larger-than-expected half point yesterday as it took advantage of benign inflation to accelerate the pace of stimulus to a sluggish economy and prevent inflation dropping even lower.
The unanimous decision by the bank’s seven-member board, led by Jose Dario Uribe, took the rate to 3.25 percent. The surprise move – after back-to-back quarter-point reductions – aims to bolster growth after the economy was hit by lower overseas demand and anemic factory output.
The reduction is the biggest since November 2009.
“The decision was taken considering the Colombian economy is growing below its potential and will probably operate in the coming quarters below its productive capac
