I will begin by describing and interpreting the recent performance of the Colombian economy and then explain our monetary policy reactions. Then I will comment on the recent turbulence in international financial markets and how it might affect the Colombian economy.
I will conclude with a summary of what I think are the key strengths of our economy and our policy framework and why they can cope with what may lie ahead. II. The economic situation  The Colombian economy is growing at historically high rates. After expanding at around 5% for two years, it grew by 6.8% in 2006.