Tuesday, June 19, 2007

Colombia Peso Gains on Likelihood Higher Central Bank Rate to Lure Inflows

(Bloomberg) -- Colombia's peso appreciated to its
strongest in two weeks on speculation the central bank will
again raise the benchmark rate, attracting foreign investment.

Policy makers on June 15 raised the overnight lending rate
to 9 percent, its highest since October 2001, and said in a
statement ``the increase in aggregate demand continues at an
accelerated rate and even above previous projections.'' The bank
has boosted its key rate 12 times since April 2006 in a bid to
control inflation.


Read more at Bloomberg Currencies News

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