Policy makers with the Colombia central bank will increase interest rates on Friday for the 10th time since February of last year, according to a Bloomberg poll including the forecasts of three economists with strong records predicting the financial institution's activity.
Despite 16 of 30 surveyed analysts expressing the opinion that the interest rate will not move from 5.25 percent after today's meeting, three analysts with the most accurate track record said rates will rise one-quarter point.
"They are giving priority to inflation, as they have done historically, and they want to get inflation to 3 percent," chief economist Juana Tellez with BBVA Colombia told Bloomberg. Tellez is one of those three vaunted analysts.
Exporters in the South American nation already are dealing with the Colombian peso's 10 percent gains thus far this year, and an interest rate rise would draw additional inflows. The peso's performance thus far this year is the strongest among rival currencies.
In 2011, the economy of Colombia expanded 5.9 percent and the mining and oil industries were particular drivers, according to The Wall Street Journal. Those sectors are projected to continue propelling the economy this year.
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