Interest Rate in Colombia
Colombia - Interest Rate
Central Bank keeps interest rate on hold in June
At its 27 July Board of Directors meeting, Colombia’s Central Bank (Banco de la República, BanRep) unanimously opted to hold the benchmark interest rate at 4.25%, matching the decision of the last meeting that took place at the end of June. The Bank’s latest move to keep the rate at the lowest level since July 2014 was in line with market expectations.
The Bank’s decision to hold fire came amid subdued inflationary pressures and a pick-up in economic activity. Inflation crept up marginally in June, coming in at 3.20% (May: 3.16%), largely owing to higher prices for food products. Nonetheless, it remained close to the midpoint of the Bank’s 2.0%–4.0% target range. While growth picked up in the first quarter and monthly indicators for the second quarter signal improving momentum, weaknesses persist in the construction, and the oil and mining sectors, raising concerns about the speed of the economic recovery. BanRep maintained its GDP estimate for 2018 at 2.7%, but again noted that the underutilization of productive capacity persists. Higher oil prices, healthier external demand, and growing investor confidence, along with accommodative monetary conditions, should buoy growth this year.
The communiqué provided little forward guidance beyond the statement that the Bank will continue to monitor the behavior of inflation and forecasts for economic activity, as well as global developments. It will decide the next course of action depending on the availability of new information. The next monetary policy meeting will be held on 28 September.
LatinFocus Consensus Forecast panelists expect the policy rate to end 2018 at 4.26% and 2019 at 4.78%.
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||6.92||0.0 %||Sep 20|
|Exchange Rate||3,006||-0.17 %||Sep 20|
|Stock Market||12,207||-0.66 %||Sep 20|
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September 7, 2018
According to the National Department of Administrative Statistics (DANE), consumer prices rose 0.12% over the previous month in August, contrasting a 0.13% month-on-month drop in July.
September 7, 2018
On 6 September, the Colombian peso ended the day at 3,086 per USD, weakening 6.4% over the same day in August.
September 3, 2018
Colombia’s manufacturing lost some pace in August, with the seasonally-adjusted Davivienda manufacturing Purchasing Managers Index (PMI) edging down to 53.3 from July’s 30-month high of 53.5.
August 22, 2018
According to the latest GDP data released by the National Statistical Institute (DANE) on 22 August, the economy accelerated on the back of a rebound in fixed investment and a pick up in private consumption.
August 16, 2018
The Fedesarrollo consumer confidence index came down to 9.8 points in July from June’s over-three-year high of 15.5 points, moving closer to the zero-point threshold separating optimism from pessimism among consumers.