Weekly Report - 05 November 2015 (WR-15-44)

COLOMBIA-PERU | Moving on interest rates. On 30 October Colombia’s central bank (Banrep) announced that it was increasing its benchmark interest rate by 50 basis points to 5.25%. This was the second consecutive increase in the benchmark interest rate in as many months following the 25 basis point increase announced in October. The move surprised local analysts, given that the consensus view was that the Banrep would seek to keep the interest rate stable or opt for another 25 basis point increase. However, in a split decision Banrep’s seven-member board voted in favour of the higher-than-expected increase in a bid to rein in inflation.