At its latest monetary policy meeting held on 29 April, the Central Bank raised the reference interest rate by 25 basis points to 3.75%. The move constituted a third consecutive month of rate hikes after policymakers began to gradually withdraw monetary stimulus following their meeting on 25 February. The decision made by the Central Bank was broadly anticipated by the market and further increases in interest rates should continue throughout the year. Expanding global and domestic economic growth propelled the decision made by the Central Bank. As the economy continues to gain momentum, the policymakers' decision aims to sustain the current rate of growth while preventing the economy from overheating. Although the Bank mentioned that prices for certain commodities such as oil and food continue to add inflationary pressures to economies worldwide, inflation in Colombia remained stable at 3.2% in March, which currently sits within the 1.0 percentage point tolerance margin of the Central Bank's 3.0% target. Moreover, core inflation, which excludes more volatile items such as fresh food and fuels, has remained stable throughout the last 12 months. Additionally, the Central Bank announced that it will maintain its daily dollar purchases of at least USD 20 million in order to alleviate the appreciation of the Colombian peso. In April alone, the domestic currency appreciated 11.4% against the US dollar over the same month last year. The next monetary policy meeting is due to be held on 27 May.
Colombia Monetary Policy
Tightening cycle continues in April
April 29, 2011
Looking for forecasts related to Monetary Policy in Colombia? Download a sample report now.
Colombia Economic News
October 7, 2016
In what was a narrow and shocking result, Colombians rejected the peace agreement between the government and the FARC at the 2 October referendum.
September 30, 2016
In August, exports grew 7.0% over the same month last year, which sharply contrasted the 27.3% plunge recorded in July.
September 30, 2016
The seven-member board of the Central Bank (BanRep) unanimously decided to keep the reference interest rate unchanged at 7.75% at its 30 September monetary policy meeting.
September 16, 2016
Industrial production unexpectedly shrank 6.2% annually in July, which contrasted the 6.7% increase seen in June.
September 5, 2016
The Colombian economy continues to adjust to low oil prices two years after they first started to collapse.