The Colombian central bank is due to make an interest rate decision today, and is widely expected to keep interest rates on hold at 4.5% for the second month in a row. The Colombian economy has been hit hard by the recession, contracting in the fourth quarter of 2008 and the first quarter of 2009. A contraction is also expected in the second quarter of 2009.

The Colombian base interest rate has fallen from over 10% to 4.5% as recession has reduced consumer spending. At present, consumer prices are falling, with inflation running at an annual rate of 3.3%, a dramatic reduction from the 7.9% inflation rate of October 2008. While export levels and retail sales remain weak, a low interest rate will help to stimulate the economy.

Colombian exchange rates are currently at 2042 per US dollar and 3335 per British pound.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.