(MENAFN) Colombian central bank has slashed its key interest rate stimulate the slowing Latin American economy due to global uncertainty and weaker domestic demand, Reuters reported.
The central bank cut the lending rate a quarter of a point to 4.50 percent, joining other Latin American countries such as Brazil that have cut borrowing costs to shield their domestic economies from slack demand overseas.
Central bank chief Jose Dario Uribe said that the decision by the bank's seven-member board was not unanimous.
The Andean country's economy has been under pressure, as weaker retail industrial sectors, while a strong peso currency is hurting exporters' profits.
The shrinking industrial production has set off alarms that weak overseas demand for Colombia's manufactured goods may put pressure on factories just as the jobless rate is falling.
Industrial output has dropped in five of the last seven months, ending with a 1.3 percent decline in September.
Recently, Finance Minister Mauricio Cardenas called the industrial sector "stagnant" and hinted he would support lower borrowing costs to spur expansion.