Editor’s Note: Colombia does not escape the global reality: inflationary aspects and appreciation of its currency have led to having to intervene the exchange market more actively. Today the article comes with a recommendation. Can send me your feedback a: is the Banco Central de Colombia feeding the imported inflation? Buenos Aires, Argentina from March 31, 2008 that the Colombian economy has achieved a growth of 7.52% during 2007, the highest growth since 1987, is a fact to celebrate. But the most relevant information for the Colombian economy in recent days did not go through this GDP data but originated from the Central Bank. The decision of the Central Bank of Colombia keep stable at 9.75% interest rate, generated a relief for all participants of the Colombian economy. The improvement in the inflationary in Colombia (while the January inflation rate was higher than expected), arrives at the moment just when, like them I mentioned in a previous article (), according to the rating agency Moody s, the margin to continue raising rates have had exhausted him to the Central Bank of Colombia. According to the Central Bank of Colombia: credit has moderated its pace of growth, especially in what refers to the commercial portfolio and consumption. This shows that monetary policy has begun to note their effects so it was not necessary a new increase of rates (which already accumulated an increase of 375 basis points from 2006).

The slowdown in the pace of credit growth will cooperate to contain the dynamics of domestic demand that was experiencing a good rate of growth. This will contain inflationary pressures originating in the Colombian economy itself, because logically, in this new global context, not all the increase in prices is explained by what happens doors inside of economies. But the maintenance of the interest rate was not the only determination that took the Colombian Central Bank.