UPDATE 2-Colombia Oct inflation seen 0.01 pct-cenbank poll

* Minority see central bank interest rate cut

* Exchange rate seen ending October at 1,792.88 vs dlr
(Adds details on rates)

BOGOTA, Oct 13 (BestGrowthStock) – Colombia’s inflation is seen
rising 0.01 percent this month compared with a fall of 0.13
percent in October last year, according to a central bank poll
of more than 40 analysts released on Wednesday.

Some market players saw the bank lowering its benchmark
interest rate before the year’s end. Although only a minority
saw a cut of between 25 and 50 basis points, the last survey in
September had no analysts seeing a rate reduction.

The monetary authority’s monthly survey on interest rates,
the foreign exchange rate and inflation found that 34 of 42
analysts estimated the bank would keep its rate at historic
lows of 3 percent to year-end.

Six analysts saw a cut of up to 50 basis points, of whom
four expected a rate slash at the bank’s next monthly policy
meeting on Oct. 29.

The expectations come at a time when firms are calling on
the body to take stronger measures against the strengthening
peso currency — which has firmed more than 12 percent so far
this year — including cutting the bank rate.

The Andean nation’s central bank has kept its rate at 3
percent since an April meeting when it surprised the market by
slashing it by 50 basis points after holding it steady for the
five previous months. [ID:nN16238361]

Inflation for 2010 was expected at 2.76 percent, down from
the 2.96 percent predicted in last month’s central bank poll.
Inflation in all of 2009 was 2.0 percent.

Consumer prices in the country are expected to rise 3.36
percent for 2011, slightly up from the 3.34 percent forecast in
last month’s central bank poll.

The survey found that analysts expected the local peso
currency — which has surged around 12 percent so far this year
— at 1,792.88 versus the dollar at the end of October and
1,827.4 at the end of this year.
(Reporting by Bogota Newsroom, Editing by Chizu Nomiyama and
Dan Grebler)

UPDATE 2-Colombia Oct inflation seen 0.01 pct-cenbank poll