Colombia’s swap rates rose to an 18- month high as Finance Minister Mauricio Cardenas said he expected economic growth to accelerate, adding to speculation that the central bank will increase borrowing costs.
Colombia’s central bank raised its benchmark interest rate for a third straight month as policy makers withdraw stimulus to South America’s fastest-growing economy. The bank also expanded its dollar purchase program.
Colombia’s shorter-term benchmark peso bonds fell to a three-year low as faster-than-forecast economic growth added to speculation that the central bank will increase borrowing costs further to curb inflation.
Colombia’s peso weakened the most in emerging markets as Finance Minister Mauricio Cardenas said the government would use its own money to buy dollars as the central bank exhausts a $1 billion intervention program.