Money in Colombia
Colombia - Money
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 March.
Colombia Interest Rate Forecast
LatinFocus Consensus Forecast panelists expect the policy rate to end 2019 at 4.89% and 2020 at 5.13%.
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||6.58||0.0 %||Mar 11|
|Exchange Rate||3,179||-0.17 %||Mar 11|
|Stock Market||12,495||-0.66 %||Mar 11|
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March 6, 2019
According to the National Department of Administrative Statistics (DANE), consumer prices rose 0.57% over the previous month in February, after a 0.60% month-on-month increase in January.
March 4, 2019
According to the National Department of Administrative Statistics (DANE), exports contracted again in January, although the rate of decline eased from the previous month.
March 1, 2019
Business conditions in Colombia’s manufacturing sector showed some improvement in February, with the rate of contraction easing slightly from the previous month.
February 28, 2019
According to the latest national accounts data released by the National Statistical Institute (DANE) on 28 February, the economy ended 2018 on a solid note, speeding up slightly in the final quarter.
Colombia: Consumer sentiment gains considerable ground in January, but remains in pessimistic territory
February 19, 2019
The Fedesarrollo consumer confidence index improved markedly in January, climbing to minus 2.8 points from minus 8.3 points in December.