Colombia cenbank has space to cut rate, must be careful-codirector

BOGOTA, March 15 Fri Mar 15, 2013 12:55pm EDT

BOGOTA, March 15 (Reuters) - Colombia's central bank has room to lower its benchmark interest rate but it must also be careful and consider other factors, said one of the seven board members, Cesar Vallejo.

"There's space in the sense that there's lower inflation, output growth is below its potential. In that sense there's space but there are also other factors, for example, people's indebtedness, government plans for public investment," he said.

"One must be careful when lowering interest rates because any circumstance can change the scenario," he told journalists on Friday.

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