Interest Rate in Colombia
Colombia - Interest Rate
Central Bank keeps benchmark interest rate on hold at 4.25%
At its 26 October Board of Directors meeting, Colombia’s Central Bank (Banco de la República, BanRep) took the unanimous decision to keep the benchmark interest rate on hold at 4.25%, where it has been since 27 April when the Bank cut the rate by 25 basis points. The latest decision was in line with market expectations.
Slowly-improving economic activity, supported by higher oil prices, and subdued inflationary pressures motivated the Bank to hold the rate stable. Inflation came in at 3.2% in September, marginally up from 3.1% in August and remaining close to the midpoint of the Bank’s 2.0%–4.0% target range. Although inflation crept up, expectations remain well-anchored and indicate that inflation should remain close to the mid-point of the target band by year-end. While overall activity indicates growth is firming, lingering weaknesses in the construction, and the oil and mining sectors, have constrained the pace of recovery.
The Bank’s statement provided little forward guidance beyond reiterating that the trajectory of inflation will be monitored closely in the context of global developments: particularly, the U.S. Federal Reserve’s tightening cycle, the evolution of oil prices, and trade tensions. The next monetary policy meeting will be held on 21 December.
LatinFocus Consensus Forecast panelists expect the policy rate to end 2019 at 4.81% and 2020 at 4.73%.
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||7.09||0.0 %||Nov 15|
|Exchange Rate||3,190||-0.17 %||Nov 15|
|Stock Market||12,327||-0.66 %||Nov 15|
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
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.
November 14, 2018
According to data released by Colombia’s National Administrative Department of Statistics (DANE) on 14 November, the industrial sector grew at a weaker pace of 2.9% over the same month of the previous year in September, after expanding a revised 4.2% year-on-year in August (previously reported: +3.9% year-on-year). Looking at a breakdown of the data showed that September’s weaker pace of expansion was due to a marked drop in the output of coking, oil refining and fuel blending, along with more modest downturns in the manufacture of basic chemical substances and their products, and manufacture of metal products. Annual average growth in industrial production climbed to 2.0% in September, up from 1.5% in August. Colombia Industrial Production Forecast
November 3, 2018
According to the National Department of Administrative Statistics (DANE), consumer prices rose 0.12% over the previous month in October, after a 0.16% month-on-month increase in September.
November 1, 2018
According to the National Department of Administrative Statistics (DANE), the annual pace of expansion in exports declined markedly to a six-month low of 3.8% in September from 13.1% in August.
November 1, 2018
Colombia’s manufacturing sector continued to weaken in October, with the seasonally-adjusted Davivienda manufacturing Purchasing Managers Index (PMI) falling to 52.0 from 52.8 in September.
October 26, 2018
At its 26 October Board of Directors meeting, Colombia’s Central Bank (Banco de la República, BanRep) took the unanimous decision to keep the benchmark interest rate on hold at 4.25%, where it has been since 27 April when the Bank cut the rate by 25 basis points.