Colombia's peso and rates plunge after surprise central bank rate hold

7 articles · Updated · Bloomberg · May 4

The peso fell 1.3% to 3,680 per dollar at Monday's open, while two-year swap contracts dropped 34 basis points and five-year rates fell four.
Policymakers kept the key rate at 11.25% on Thursday before Friday's holiday, defying all but one estimate in a Bloomberg survey of economists.
The market shock came weeks before a pivotal election, highlighting investor sensitivity to unexpected policy moves in Colombia.

Was Colombia's surprise rate hold a political gamble or a sign of deeper economic trouble?

As its currency plunges, can rising oil prices rescue Colombia's fragile economy?