Interest Rate in Colombia
Colombia - Interest Rate
Central Bank holds rate in April meeting
In a unanimous decision, Colombia’s Central Bank (Banco de la República, BanRep) kept the benchmark interest rate at 4.25% at its latest Board of Directors meeting on 26 April. The rate has been held at the current level since 27 April 2018, when the rate was cut by 25 basis points. The decision was in line with market expectations.
The Bank kept the rate steady amid relatively muted price pressures, largely stable inflation expectations and excess production capacity. Inflation edged up to 3.2% in March on a weaker peso (February: 3.0%), but remained within the Bank’s 2.0%–4.0% target band. While the Bank’s focus at the year’s outset was uncertainty over the pace of economic recovery, it has now shifted to economic slack and specifically how rapidly it will decline, giving the Bank room to maintain its expansionary stance. Growth should climb this year on an improvement in the external sector, while also being supported by solid domestic demand dynamics.
Little forward guidance was offered in the Bank’s accompanying statement, beyond reiterating that the trajectory of inflation will be closely monitored in the context of global developments. Central Bank Governor Juan José Echavarría, however, did signal in a press conference that the rate will be kept stable for most of the year. The majority of panelists expect a rate hike in the second half of the year, as price pressures are expected to pick up.
The next monetary policy meeting will be held on 28 June.
LatinFocus Consensus Forecast panelists expect the policy rate to end 2019 at 4.60% and 2020 at 4.87%.
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 | 6.04 | 0.0 % | Jun 14 |
| Exchange Rate | 3,273 | -0.17 % | Jun 14 |
| Stock Market | 12,317 | -0.66 % | Jun 14 |
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Economic News
Colombia: Industrial production swings to contraction in April
June 14, 2019
The industrial sector swung to contraction in April, with output declining 1.3% over the same month of last year, according to data released by the country’s National Administrative Department of Statistics (DANE) on 14 June.
Colombia: Inflation remains steady in May
June 5, 2019
Consumer prices rose 0.31% over the previous month in May, following a 0.50% month-on-month increase in April.
Colombia: Exports return to growth in April
June 4, 2019
Exports rose 2.2% over the same month of the previous year in April, contrasting a 0.8% year-on-year drop in March.
Colombia: Manufacturing PMI falls in May but remains in expansionary territory
June 4, 2019
Business conditions in Colombia’s manufacturing sector improved again in May but at a softer rate compared to April.
Colombia: Economy maintains momentum in Q1
May 23, 2019
The economy grew 2.8% in annual terms in the first quarter of the year, up marginally from the fourth quarter’s revised 2.7% growth (previously reported: +2.8% year-on-year), according to the latest national accounts data released by the Statistical Institute (DANE) on 22 May.
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