Colombia Monetary Policy


Colombia: Central Bank keeps interest rate on hold

October 31, 2014

The Central Bank (BanRep) left its reference interest rate unchanged at 4.50% at its 30 October monetary policy meeting. The decision was widely expected by market analysts and represented a second pause in the interest rate tightening cycle following five consecutive rate hikes.

BanRep’s accompanying statement in large part reiterated last month’s message. The Central Bank stressed the economy’s ongoing strong economic performance and that the output gap has almost closed. Furthermore, the Bank noted that inflation expectations remain close to its 3.0% target. Nevertheless, the Bank pointed out the following downside risks to aggregate demand: worsening terms of trade due to the declining international oil price; uncertainty about the global economic recovery owing to the Euro area’s subdued performance; and uncertainty regarding the cost of external financing as risk premiums of several countries have risen and their currencies have depreciated against the U.S. dollar. Taking into account the current balance of risks, the Bank decided that the current level of the reference interest rate is adequate.

BanRep signaled a neutral stance on monetary policy in saying that future decisions are subject to the developments of real and financial indicators. The next policy meeting is scheduled for 28 November.

LatinFocus Consensus Forecast panelists see the policy rate at 4.59% at the end of 2014. Panelists expect the policy rate to end 2015 at 4.90%.

Author: Teresa Kersting, Economist

Sample Report

Looking for forecasts related to Monetary Policy in Colombia? Download a sample report now.


Colombia Monetary Policy Chart

Colombia Monetary Policy October 2014

Note: Central Bank policy rate in %.
Source: Colombia Central Bank.

Colombia Economic News

  • Colombia: Inflation remains steady in June

    July 5, 2018

    According to the National Department of Administrative Statistics (DANE), consumer prices rose 0.15% over the previous month in June, a smaller rise than the 0.25% month-on-month increase in May.

    Read more

  • Colombia: PMI shoots up to two-and-a-half year high in June

    July 3, 2018

    The seasonally-adjusted Davivienda manufacturing Purchasing Managers Index (PMI) climbed to 53.0 in June, up from 51.1 in May, which marks the highest result since January 2016.

    Read more

  • Colombia: Central Bank keeps interest rate on hold in June

    June 29, 2018

    At its 29 June Board of Directors meeting, Colombia’s Central Bank (Banco de la República, BanRep) unanimously voted to maintain the benchmark interest rate at 4.25%, following a rate cut by 25 basis points at its last meeting held in April.

    Read more

  • Colombia:

    June 19, 2018

    The Fedesarollo consumer confidence index shot up to 8.9 points in May from 1.5 points in April, moving further above the zero-point threshold separating optimism from pessimism among consumers.

    Read more

  • Colombia: Industrial production records stellar expansion in April

    June 15, 2018

    According to data released by Colombia’s National Administrative Department of Statistics (DANE) on 15 June, industrial output expanded 10.5% over the same month of the previous year in April, contrasting a revised 1.2% year-on-year contraction in March (previously reported: -1.4% year-on-year). Looking at a breakdown of the data, 34 out of the 39 industrial activities recorded an upturn, while the remaining five categories registered a decline.

    Read more

More news

Search form