attractive landscape in Colombia

Colombia Monetary Policy October 2019

Colombia: Central Bank stays put in October

Colombia’s Central Bank (BanRep) held the benchmark interest rate unchanged at 4.25% at its latest Board of Directors meeting on 31 October. The decision, which was unanimous and in line with market expectations, means that the rate has remained at the same level since 27 April 2018—when it was cut by 25 basis points.

The Bank held rates in light of within-target inflation and solid growth expectations for the second half of the year. Although policymakers expected price pressures to recede somewhat in September, inflation held steady at August’s 3.8% amid persistent supply-side constraints. Nevertheless, solid economic activity prospects for H2 supported the decision to stay put in October.

Looking ahead, Governor Juan José Echavarría struck a slightly more hawkish tone in its forward-looking guidance, signaling that the Bank is unlikely to join the global easing cycle anytime soon and that the base case is for the rate to remain “unchanged over the coming months”. Although easing supply constraints are expected to bring price pressures down early next year, the increased volatility of the peso as of late raises upside risks to the inflation outlook.

The next monetary policy meeting will be held on 22 November.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest