BNM stands pat for the sixth straight meeting: At its meeting on 9 July, Bank Negara Malaysia (BNM) decided to...
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 | 9.25 |
| 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 resumes tightening cycle
Bank hikes more than expected: At its meeting on 30 June, the Central Bank (Banrep) decided to resume its tightening cycle, raising its policy interest rate by 75 basis points to 12.00% starting from 1 July. The hike was larger than market analysts had expected, and rates currently sit at the highest level in over two years.
High inflation triggers rate hike: The decision was based on inflation remaining above the Central Bank’s 3.0% inflation target in recent months and persistently elevated inflation expectations. Furthermore, low unemployment and robust wage growth provided additional justification for the move.
Rate hikes to continue this year: The Central Bank did not provide any forward guidance. Nevertheless, the vast majority of our panelists expect additional rate hikes of between 25 and 100 basis points over the coming quarters, as inflation remains elevated. As a result, the policy rate is forecast to end 2026 at its highest level since 2023. The Bank will reconvene on 31 July.
Panelist insight: Commenting on the outlook, BBVA’s Alejandro Reyes González stated: “Looking ahead, additional inflationary pressures are likely to emerge over the coming months. Some are expected to be temporary, such as the potential effects of an El Niño event, while others appear more structural, including demand-side pressures supported by the continued strength of the labor market. […] Accordingly, we believe that BanRep is likely to continue the current tightening cycle with at least one additional 25-basis-point rate increase over the coming months.”
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 29 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.
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