At a meeting today, the Board of Directors of Banco de la República left its intervention interest rate unchanged. As a result, the repo auction base rate will remain at 3%. This decision was taken in light of the following factors.

Minutes of the Board of Directors’ meeting that was held on July 23, 2010.

"The Risk-Taking Channel and Monetary Transmission Mechanism in Colombia" by Martha López P., Fernando Tenjo G. and Héctor Zárate S.

Presentation by José Darío Uribe, Governor of the Central Bank of Colombia, at Chatham House City Series 2010 Conference.

"Monetary Policy and Commodity Prices: an endogenous analysis using an SVAR approach" by Luz Adriana Flórez.

"Bayesian Model Averaging. An Application to Forecast Inflation in Colombia" by Eliana González.

"Measuring Economic and Social Impacts of Migration in Colombia: New evidence" by Mauricio Cárdenas, Carlos Medina and Andrés Trejos.

Presentation by José Darío Uribe, Governor of the Central Bank of Colombia, at the Seminar on Inflation Targeting organized by the Centre for Central Banking Studies of the Bank of England at Columbia University. New York, April 21, 2010.

Fiscal policy in Colombia and a prospective analysis after the 2008 financial crisis by Ignacio Lozano.

Answers to the questions about the request for proposal for external managers published on March 31, 2010

Since 1994, Banco de la República has been successfully running an External Management Program for Colombia’s foreign reserves. The main objectives of the program are to: a) enhance the performance of the investment portfolio; b) provide training and knowledge transfer to Banco de la Republica’s staff; and c) support the research efforts on the management of foreign reserves.

The Board of Directors of the Bank has approved a selection process for a new external asset manager. The Bank is looking for asset managers specialized in short-duration fixed income portfolios. In order to participate in this selection process, interested firms should answer the attached questionnaire by April 30, 2010. Eligible firms must have at least US$50 billion in fixed income assets under management and have a minimum experience of 10 years in fixed income management. Any firm that has worked with the Bank as a manager of the Bank’s Foreign Reserves on or after December 31, 2004 will not be considered. Additional minimum requirements, including those related to training and knowledge transfer and customer service, are described in detail in the questionnaire.

"Assessing the Link between Adolescent Fertility and Urban Crime" by Alejandro Gaviria, Carlos Medina and Jorge Andrés Tamayo .

"Identification problems in the solution of linearized DSGE models" by Jean Pietro Bonaldi.

Failing and Merging as Competing Alternatives during Times of Financial Distress: Evidence from the Colombian Financial Crisis by: José Eduardo Gómez-González y Juan Carlos Mendoza.

At a meeting today, the Board of Directors of the Central Bank of Colombia agreed to make no change in the intervention interest rate. Accordingly, the repo auction base rate will remain at 3.50%. This decision was based on the following factors:

In order to have terms of reference for the decisions regarding monetary policy, the Board of Directors of the Banco de la República carries out periodical analysis of the results of inflation, monetary aggregates, and other economic variables.