Colombia's central bank increased interest rates to address concerns over rising inflation that surpassed the bank's target range of 2% to 4%. The bank has decided to increase its benchmark interest rate by 25 basis points to 4.75%. The bank has set inflation control as its #1 priority, but the bank should be aware of consumer's inflation expectations if they increase the interest rates. The economy may fall into recession if inflation expectations continue to increase.
http://www.marketwatch.com/story/colombias-central-bank-hikes-interest-rates-2011-11-25
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