Latest bank decision: At its November meeting, the Central Bank decided to leave the cash rate at 3.60%, following 75...
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
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%, eop) | 1.75 | 3.00 | 12.00 | 13.00 | 9.50 |
| 90-day DTF (%, eop) | 1.89 | 3.21 | 13.70 | 12.69 | 9.25 |
| 10-Year Bond Yield (%, eop) | 5.76 | 8.46 | 13.23 | 9.94 | 12.43 |
Central Bank leaves rates unchanged in October
Bank holds fire: At its meeting on 31 October, the Central Bank of Colombia (Banrep) decided to keep the benchmark interest rate unchanged at 9.25%, matching market expectations. The Board of Directors was split: Four voted for the hold, two for a 50 basis point reduction and one for a 25 basis point decrease.
Above-target inflation and strong domestic demand drive the decision: The Central Bank's decision was driven by above-target and rising inflation. Moreover, inflation expectations increased in the run-up to Banrep’s meeting, exceeding the 3.0% target for the next two years. Finally, Banrep deemed an interest rate cut unnecessary due to already strong domestic demand in the economy.
Easing cycle likely to resume in early 2026: The Central Bank provided no explicit forward guidance on future interest rate decisions. That said, our Consensus is for Banrep to ease monetary policy again from Q1 2026.
Panelist insight: Commenting on the outlook, Itaú Unibanco analysts stated: “The rebound in inflation, de-anchoring of inflation expectations, strength of domestic demand, and persistent fiscal imbalances limit the room for monetary policy easing. We anticipate that BanRep will keep the policy rate unchanged at 9.25%, at least until the 2H26.”
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 36 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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