The Central Bank of Colombia increased its benchmark monetary policy interest rate by 25 basis points to 4.00% from 3.75% previously. The Bank also extended its $20 million dollar per day foreign exchange market purchase plan to 30 September, from an initial expiry date of 17 June. Central Bank Governor, Jose Dario Uribe, said: "Adjustments toward a less-expansive monetary policy should continue,".
Colombia reported annual inflation of 2.84% in April, compared to 3.19% in March, and a rate of 1.84% in April 2010, this compares to the Bank's inflation target of 3%. Total gross lending increased 21% to 183.6 trillion pesos ($102 billion) in March 2011. Goldman Sachs is forecasting 2011 GDP growth at 5.5%, while Morgan Stanley is forecasting 4.9% growth for the Colombian economy.