Reflecting Latin America’s fastest growing economy, Colombia exchange traded funds have been outperforming. Now, the Colombian central bank has hiked its overnight lending rate for the fourth straight month to help prevent overheating.

Year-to-date, the Global X FTSE Colombia 20 ETF (NYSEArca: GXG) is up 12.3%, Market Vectors Colombia ETF (NYSEArca: COLX) rose 15.1% and and the iShares MSCI Colombia Capped ETF (NYSEArca: ICOL) increased 10.1%.

In comparison, the broader iShares Latin American 40 ETF (NYSEArca: ILF) is 9.4% higher so far this year while iShares MSCI Emerging Markets ETF (NYSEArca: EEM) rose 7.6%.

Bank Governor Jose Dario Uribe announced that the central bank hiked rates by a quarter point to 4.25% Friday, Bloomberg reports.

In contrast, other Latin America countries, including Mexico, Chile, and Peru, have lowered borrowing costs in response to slowing growth rates.

Colombia’s central bank also upwardly revised the economy’s growth projection to 5% from 4.3%. The economy expanded 6.4% in the first quarter, its fastest pace in two years, on a surge in public works spending and recovery in coal and coffee. Due to the strong and positive growth forecasts, Colombia’s central bank feels it is given enough wiggle room to withdraw stimulus measures.

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