Interest Rate in Colombia
Colombia - Interest Rate
Central Bank holds fire in July meeting despite intensifying price pressures
Colombia’s Central Bank (BanRep) held the benchmark interest rate at 4.25% at its latest Board of Directors meeting on 26 July. 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 despite a continued rise in price pressures in June as core inflation remained below the 3.0% target and on expectations that headline inflation will ultimately converge to the target. Inflation inched up to 3.4% from 3.3% in May on higher food prices. While the Bank noted the risk of inflation climbing further on supply shocks in the coming months, namely due to a pick-up in domestic demand and slower portfolio inflows widening the current account deficit, the Bank will likely maintain its current stance in the near-term given the economy’s relatively weak performance since the beginning of the year, uncertainty over the pace of decline in excessive productive capacity and the global pullback in hiking rates will likely prompt.
The communiqué offered little forward guidance beyond stating that forecasts on economic activity and inflation, along with the evolution of the balance of payments in the context of global developments, will guide the Bank’s future decision. A minority of FocusEconomics panelists project a rate hike before year-end, while a larger share projects it being held off until 2020.
The next monetary policy meeting will be held on 27 September.
LatinFocus Consensus Forecast panelists expect the policy rate to end 2019 at 4.33% and 2020 at 4.69%.
Colombia - Interest Rate Data
| 2013 | 2014 | 2015 | 2016 | 2017 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%) | 3.25 | 4.50 | 5.75 | 7.50 | 4.75 |
Colombia Interest Rate Chart
Source: Colombia Central Bank.
Colombia Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 5.82 | 0.0 % | Jul 31 |
| Exchange Rate | 3,281 | -0.17 % | Jul 31 |
| Stock Market | 12,727 | -0.66 % | Jul 31 |
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Economic News
Colombia: Growth eases in Q2 on softer domestic demand
August 22, 2019
Economic growth edged down to 3.0% year-on-year in the second quarter, from an upwardly revised 3.1% in the first quarter (previously reported: +2.8% year-on-year) .
Colombia: Consumers become less pessimistic in July
August 20, 2019
Consumer sentiment improved in July, albeit remained in pessimistic territory.
Colombia: Industrial sector swings back to contraction in June
August 14, 2019
Industrial production fell 1.1% over the same month of the last year in June, according to data released by the country’s National Administrative Department of Statistics (DANE) on 14 August.
Colombia: Inflation climbs in July amid a weakening of the peso
August 5, 2019
Consumer prices rose 0.22% over the previous month in July, following a 0.27% month-on-month upturn in June.
Colombia: Exports in June fall at the sharpest rate this year
August 2, 2019
Exports contracted 8.7% over the same month of the previous year in June, contrasting a 1.2% year-on-year rise in May.
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