Money in Colombia
Colombia - Money
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 - Money Data
|Money (annual variation in %)||14.7||9.1||12.5||6.9||5.0|
5 years of economic forecasts for more than 30 economic indicators.
Colombia Money Chart
Source: Colombia Central Bank.
|Bond Yield||6.49||0.0 %||May 13|
|Exchange Rate||3,305||-0.17 %||May 13|
|Stock Market||12,363||-0.66 %||May 13|
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May 17, 2019
Consumers turned pessimistic at the start of the second quarter, with the Fedesarrollo consumer confidence index plunging into negative territory in April, as it fell from 1.2 points in March to minus 9.6 points.
May 15, 2019
Colombia’s industrial sector gained traction in March, growing 3.2% over the same month of last year, according to data released by the country’s National Administrative Department of Statistics (DANE) on 15 April.
May 11, 2019
The Colombian peso dived sharply at the beginning of May, as recent adjustments to the fiscal rule raised concerns over the pace of fiscal reform.
May 7, 2019
Exports contracted 0.8% over the same month of the previous year in March, contrasting a 6.2% year-on-year rebound in February.
May 6, 2019
Consumer prices rose 0.50% over the previous month in April, following a 0.43% month-on-month increase in March.