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Cardenas, who had repeatedly said there was no chance of a
downgrade, told local Caracol Radio the best plan would now be
to pause and resume interest rate cuts next year.
The decision on Monday by S&P to lower the Andean nation's
credit rating by a notch to BBB-, citing the South American
country's weakened policy flexibility, came just days before the
central bank meets to discuss monetary policy amid weak economic
growth and inflation that remains higher than desired.
"I believe that with this news it would probably be convenient
to take a break, analyze the decision, evaluate the moment, and
resume cuts from January next year," he said of Thursday's
impending meeting.
Cardenas is one of seven policymakers and represents the
government on the board.
In a Reuters poll released on Monday, 12 of 17 analysts
projected that the bank would leave its lending rate stable at
4.75 percent, while the remaining five estimated the agency will
reduce it by 25 points to 4.50 percent.
The monetary authority has reduced borrowing costs by 275 basis
points since December 2016, in a bid to bolster the sluggish
economy while inflation remained a niggle.
Colombia's economy continues to suffer from the effects of lower
commodity prices, reflected in its high level of external debt,
the ratings agency said in a statement. (http://bit.ly/2z1S2PA)
It rated Colombia's outlook as stable, indicating it expects the
country's political institutions and economic policies to
continue to contribute to economic stability.
(Reporting by Helen Murphy and Nelson Bocanegra; Editing by
Bernadette Baum)
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