24 February 2011

COLOMBIA: 25 Feb. UPDATE: Surprize Rate Increase, 1st Since 2008, Just Days After Record Bond Sell-Off.

BLOOMBERG / H. MURPHY /

   In a surprise move, the central bank raised its benchmark interest rate by 25 basis points to 3.25%... the first time in over 2-1/2 years...and just days after its bonds saw their biggest sell-off  in 28 months.
  The market showed its disapproval of central bank governor Jose Dario Uribe's (pictured) inaction.
    Uribe held the benchmark at a record low 3 percent even after the worst floods in three decades raised food prices... until yesterday.