Colombian interest rates remain unchanged

Colombia's central bank to leave benchmark rate at the same levels. Returning US politicians see great improvement in the country.

In Colombia, the rate charged to banks from the central bank was left unchanged this week. The rate, which is set at 9.5 per cent, is still at its highest level since 2001. The rate remains the same in an effort to slow inflation.

The vote by the policy makers was unanimous. Economists around the world had expected the rate to remain the same, while a few wanted to see it rise to 9.75 per cent.

Inflation here rose 0.49 per cent in the month of December. This was more than expected but is blamed on food prices and increase transportation increases during the holiday season. Annual inflation numbers for 2007 were at 5.69 per cent. The central bank's target range for 2008 is 3.5 per cent to 4.5 per cent.

In other news, Democratic lawmakers returned from Colombia on Friday. They were impressed with the amount of change seen in the last five years. A free trade deal here has been undecided upon, though.

According to one Democrat, Rep. Eliot Engel, who is a New York Democrat, "There still are some serious questions being raised by organized labour in the United States and by the overwhelming amount of labour in Colombia and (by) human rights groups." A decision about the proposed free trade deal with Colombia has been left in uncertain waters.