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Colombia central bank raises 2024 inflation outlook to 5.7%

Published 08/02/2024, 06:45 PM
Updated 08/02/2024, 07:30 PM
© Reuters. FILE PHOTO: People walk through the Paloquemao market square, amid inflation reaching the highest figures in years, in Bogota, Colombia October 7, 2022. REUTERS/Luisa Gonzalez/File Photo

BOGOTA (Reuters) -Colombia's central bank technical team revised its inflation outlook for the year to 5.7%, from a previous 5.5%, it said in a quarterly report published on Friday.

The new forecast is still above the specific long-term inflation goal established by the central bank, of 3%.

For 2025, the technical team at the central bank expects inflation at close to 3%. The team's considerations are taken into account by the bank's board of directors for its monetary policy decisions.

"In the remainder of 2024 and towards 2025, levels of economic activity could continue to recover, in an environment of external financing conditions that gradually become less tight and a less restrictive monetary policy," the report said.

Colombia's 12-month inflation through the end of June was 7.18%.

© Reuters. FILE PHOTO: People walk through the Paloquemao market square, amid inflation reaching the highest figures in years, in Bogota, Colombia October 7, 2022. REUTERS/Luisa Gonzalez/File Photo

For the second quarter of 2024, the technical team forecast growth of 1.8%. The government's DANE statistics agency will publish second-quarter growth data on Aug. 15.

On Wednesday, Colombia's central bank cut its benchmark interest rate by 50 basis points to 10.75%, its sixth cut since December.

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