Interest Rate in Colombia
Colombia - Interest Rate
Central Bank stays put at first meeting of the year
At its Board of Directors meeting held on 31 January, Colombia’s Central Bank (Banco de la República, BanRep) maintained the benchmark interest rate at 4.25%, where it has been since 27 April when the Bank cut the rate by 25 basis points. The Bank’s decision was unanimous and in line with market expectations.
Subdued inflation—pushed down further by lower oil prices—well-anchored inflation expectations, and healthy economic activity prompted the Bank to keep the rate on hold. Inflation inched down to 3.2% in December (November: 3.3%), nearing closer to the midpoint of the Bank’s 2.0%–4.0% target range. While buoyant domestic demand has supported growth, uncertainty lingers over the pace of the recovery. Going into 2019, growth is set to accelerate on higher oil production and an upturn in domestic demand. Meanwhile, the recently-approved tax bill, which included lowering the corporate tax rate from 33% to 30%, should boost investment.
The Bank’s accompanying statement indicated a continued neutral stance, offering little forward guidance beyond reiterating that the trajectory of inflation will be closely monitored in the context of global developments, including the U.S. Federal Reserve’s tightening cycle, the evolution of oil prices, and global trade tensions. That said, BanRep is expected to embark on a tightening cycle in 2019 given that the emerging El Niño weather phenomenon and the recently-announced minimum wage hike are likely to stoke prices price pressures. The next monetary policy meeting will be held on 22 February.
Colombia Interest Rate Forecast
LatinFocus Consensus Forecast panelists expect the policy rate to end 2019 at 4.89% and 2020 at 5.13%.
Colombia - Interest Rate Data
|Policy Interest Rate (%)||3.25||4.50||5.75||7.50||4.75|
5 years of economic forecasts for more than 30 economic indicators.
Colombia Interest Rate Chart
Source: Colombia Central Bank.
|Bond Yield||6.67||0.0 %||Feb 14|
|Exchange Rate||3,151||-0.17 %||Feb 14|
|Stock Market||12,002||-0.66 %||Feb 14|
Get a sample report showing our regional, country and commodities data and analysis.
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
February 14, 2019
According to data released by Colombia’s National Administrative Department of Statistics (DANE) on 14 February, the industrial sector contracted for the first time in nine months in December.
February 5, 2019
According to the National Department of Administrative Statistics (DANE), exports swung to contraction in December from expansion in the previous month.
February 5, 2019
According to the National Department of Administrative Statistics (DANE), consumer prices rose 0.60% over the previous month in January, following a 0.30% month-on-month upturn in December.
February 1, 2019
Colombia’s manufacturing sector slammed the brakes in January, on the heels of a five-month slump.
January 31, 2019
At its Board of Directors meeting held on 31 January, Colombia’s Central Bank (Banco de la República, BanRep) maintained the benchmark interest rate at 4.25%, where it has been since 27 April when the Bank cut the rate by 25 basis points.