Latest bank decision: At its meeting on 27 May, the Central Bank decided to hold the Official Cash Rate (OCR)...
Policy Interest Rate in Colombia
The Central Bank's policy rates over the last decade saw alternating hiking and lowering cycles. Post-financial crisis, rates trended upward to tackle climbing inflation. However, in response to the COVID-19 pandemic, rates were quickly cut to support the economy and the peso. In the face of rising inflation, the Bank initiated a series of rate hikes in 2022. By 2024, the Bank eased its stance, but rates remained elevated by pre-pandemic standards.
The policy interest rate ended 2024 at 9.50%, compared to the end-2023 value of 13.00% and the figure a decade earlier of 4.50%. It averaged 6.39% over the last decade. For more interest rate information, visit our dedicated page.
Colombia Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Colombia from 2014 to 2025.
Source: Macrobond.
Colombia Interest Rate Data
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%, eop) | 3.00 | 12.00 | 13.00 | 9.50 | 9.15 |
| 90-day DTF (%, eop) | 3.21 | 13.70 | 12.69 | 9.25 | 9.09 |
| 10-Year Bond Yield (%, eop) | 8.46 | 13.23 | 9.94 | 12.43 | 13.13 |
Central Bank holds rates in April
Bank on hold: On 30 April, the Central Bank of Colombia (Banrep) decided to keep rates steady at 11.25% following rate hikes earlier in the year.
Wait-and-see approach prevails: The Central Bank’s hold partly reflected a desire to assess the 200 basis points of hikes made earlier this year before hiking further. Moreover, elevated uncertainty over the outlook for imported price pressures due to Middle East conflict was a further reason to wait and see. Finally, the Bank commented on its desire not to be seen making any politically motivated moves in the context of elections due for end-May.
Banrep to hike further: The Central Bank did not provide specific forward guidance on future interest rate changes. That said, our panelists expect additional rate hikes ahead, with our Consensus for the policy rate to end this year close to a three-year high. The evolution of the U.S.-Iran conflict and its impact on imported inflation will be key to monitor.
Panelist insight: Commenting on the outlook, Goldman Sachs’ Santiago Tellez stated: “All told, we still expect a 75bp rate hike in June and a final +25bp move in July for a terminal rate of 12.25%, but we are also open to back-to-back 50-50bp hikes. The hiking cycle delivered thus far, the restrictive policy stance, and incipient signs of a more moderate inclination to tighten further leave the risks to our forecast as balanced.”
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Colombian interest rate projections for the next ten years from a panel of 38 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Colombian interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Colombian interest rate projections.
Want to get access to the full dataset of Colombian interest rate forecasts? Send an email to info@focus-economics.com.
Latest Global Monetary Policy News
-
New Zealand: Central Bank holds rates in May -
Israel: Central Bank cuts rates in May Latest bank decision: At its meeting on 25 May, the Central Bank decided to cut its policy rate from 4.00%... -
Hungary: Central Bank stands pat in May Hold aligns with market expectations: On 26 May, Magyar Nemzeti Bank (MNB) left the base rate unchanged at 6.25% for... -
Egypt: Central Bank of Egypt holds rates in May CBE maintains pause on easing cycle: At its meeting on 21 May, the Central Bank of Egypt (CBE) decided to... -
Costa Rica: Central Bank of Costa Rica maintains rates in May The BCCR extends pause into a third meeting: At its meeting on 21 May, the Central Bank of Costa Rica... -
Romania: NBR keeps interest rates in May at highest level in the EU National Bank of Romania holds fire, as expected: At its meeting on 15 May, the National Bank of Romania (NBR)... -
Angola: Central Bank of Angola reduces rates in May 5-point cut brings cumulative easing to 250 basis points: At its meeting on 14 May, the National Bank of Angola...