[This article has been corrected, Bloomberg initially reported that Colombia lowered rates, the official release is here]
The move expected after three rate cuts this year. At this time in 2012, Colombian rates were at 5.25%.
Part of the reason for the cuts has been to stem currency appreciation but the country also outright intervenes to keep the local currency down. The talk about currency wars is in the developed world but the front lines are in emerging markets like Colombia.
And if you think Colombia is a place for drug wars, you’ve missed out on a great trade. On Thursday, S&P upgraded the country to BBB.
