Colombia’s central bank board held the benchmark interest rate at 1.75% for the six consecutive month at its meeting on Friday, amid below-target inflation and renewed optimism about growth. The bank revised its economic growth projection for this year upward to 5.2%, from a previous range of 2% to 6% with 4.5% as the most likely figure. “The reason the lowest-ever interest rate in the history of Colombia is being maintained has much to do with the monetary stimulus which this allows, to facilitate the recovery of the economy,” board chief Leonardo Villar said in a virtual press conference. A coming tax reform which the government hopes will raise some $7 billion also influenced the vote, the board said in a statement read by Villar. “The decision to keep the interest rate stable is largely based on confidence that Congress will approve an adequate fiscal adjustment program to achieve a return to a sustainable path for public finances and economic growth,” it said. The revision of the GDP growth estimate for 2021 was inspired by final data from 2020, which was not as dire as expected, despite economic contraction of 6.8%, Villar said. The economy is also recovering quickly from lockdowns declared in January to fight a second coronavirus peak, he said, which contributed to the more optimistic outlook. “Add to that an international context in which the global economy very probably will grow more than predicted, thanks to the aid package in the United States ... and a recovery in the oil price,” Villar said. All 19 analysts polled by Reuters last week expected the hold. Inflation will reach 2.3% the bank has said, well below the long-term target of 3%. Friday’s meeting took place with six of the usual seven board members, as new member Jaime Jaramillo has not yet been formally installed. (Reporting by Nelson Bocanegra and Oliver Griffin; Editing by Richard Chang Writing by Julia Symmes Cobb Editing by Richard Pullin and Richard Chang)