Interest Rate in Colombia
Colombia - Interest Rate
Central Bank keeps interest rate on hold in June
At its 29 June Board of Directors meeting, Colombia’s Central Bank (Banco de la República, BanRep) unanimously voted to maintain the benchmark interest rate at 4.25%, following a rate cut by 25 basis points at its last meeting held in April. The Bank’s recent move was in line with analysts’ expectations. The benchmark interest rate is now at the lowest level since July 2014.
The Bank’s decision came against the backdrop of subdued inflation and improving economic prospects amid buoyant external conditions underpinned by higher oil prices. Inflation rose for the first time in May following five consecutive months of decline but remained at a muted level: It inched up to 3.2% in the month (April: 3.1%), hovering close to the midpoint of the Bank’s 2.0%–4.0% target range.
The Bank held off from easing its policy stance any further given upside risks to inflation, including a rise in food prices and a stronger-than-expected depreciation of the peso, which have fueled higher inflation expectations and could delay inflation’s trajectory towards the 3.0% target. While weakness in economic activity persists, favorable oil prices and the improving trend in confidence should bolster demand and lift growth. BanRep forecasts that GDP will grow 2.7% this year, supported by healthier external demand, stronger infrastructure investment and accommodative monetary conditions. The projection would be a marked improvement from 2017’s performance, but well below potential growth.
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 27 July.
LatinFocus Consensus Forecast panelists expect the policy rate to end 2018 at 4.21% and 2019 at 4.70%.
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||6.65||0.0 %||Jul 13|
|Exchange Rate||2,859||-0.17 %||Jul 13|
|Stock Market||12,262||-0.66 %||Jul 13|
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.
July 5, 2018
According to the National Department of Administrative Statistics (DANE), consumer prices rose 0.15% over the previous month in June, a smaller rise than the 0.25% month-on-month increase in May.
July 3, 2018
The seasonally-adjusted Davivienda manufacturing Purchasing Managers Index (PMI) climbed to 53.0 in June, up from 51.1 in May, which marks the highest result since January 2016.
June 29, 2018
At its 29 June Board of Directors meeting, Colombia’s Central Bank (Banco de la República, BanRep) unanimously voted to maintain the benchmark interest rate at 4.25%, following a rate cut by 25 basis points at its last meeting held in April.
June 19, 2018
The Fedesarollo consumer confidence index shot up to 8.9 points in May from 1.5 points in April, moving further above the zero-point threshold separating optimism from pessimism among consumers.
June 15, 2018
According to data released by Colombia’s National Administrative Department of Statistics (DANE) on 15 June, industrial output expanded 11.5% over the same month of the previous year in April, contrasting a revised 1.2% year-on-year contraction in March (previously reported: -1.4% year-on-year). Looking at a breakdown of the data, 34 out of the 39 industrial activities recorded an upturn, while the remaining five categories registered a decline.