Central Bank of Colombia

May Day 2020: Stocks Down, Developing Currencies Weaken, and Trump Makes a Fresh Tariff Threat

May 1, 2020

Markets are observing labor day holidays in most of Continental Europe and in a slew of Asian countries. What should have been a very quiet day was disturbed by a new tariff threat from President Trump against China, whom he blames for the Covid-19 global pandemic which has hit America particularly harshly. People didn’t have […] More

Central Bank of Colombia

March 21, 2018

Colombia’s monetary policy interest rate was left unchanged at 4.5%. It had been reduced by 25 basis points this past January and before that by 25 bps in December 2016, February 2017, March 2017, May 2017, July 2017, August 2017, October 2017, and November 2017, as well as by 50 basis points last April and […] More

Yesterday’s Dollar Rebound Already Petering Out

January 30, 2018

The dollar‘s advance on Monday was trimmed by overnight losses of 0.5% against the Swiss franc, 0.3% relative to the euro and yen, 0.2% vis-a-vis the New Zealand and Australian dollars, and 0.1% versus the loonie and sterling. Investors want to see exactly what President Trump presents in tonight’s state of the union address and […] More

Central Bank of Colombia Enacts an Eighth 2017 Interest Rate Cut

October 30, 2017

Colombia’s benchmark interest rate was sliced to 5.0% from 5.25%. This was this year’s sixth 25-basis point reduction, and there have been also two cuts of 50 basis points. Prior to these, there was an initial 25-bp cut in mid-December of 2016. The rate had crested at 7.75% from July until December of last year. […] More

Central Bank of Colombia

March 24, 2017

A statement has been released after the third 25-basis point reduction of Colombia’s benchmark interest rate in four months. The rate becomes 7.0%, lowest since last May. From April 2014 until July 2016, 15 25-basis point interest rate hikes were engineered by monetary authorities. While inflation of 5.2% in February was higher than the 3% […] More

Central Bank of Colombia

February 1, 2016

Colombian monetary policymakers like to change their interest rate in consecutive monthly moves.  From 5.25%, the rate was sliced by 25 basis points each in July and August, followed by five straight cuts totaling 150 basis points from November 2012 through March 2013.  When an initial 25-basis point rate hike was done a year later […] More

Central Bank of the Republic of Colombia Lifts Key Interest Rate for a Second Time

May 31, 2014

April’s first Colombian central bank interest rate hike in 26 months has been followed by a second 25-basis point increase in May, taking the key rate to 3.75%.  Before these back-to-back increases, the previous rate hike had occurred in February 2012, a move that culminated a streak of nine tightenings totaling 225 basis points.  In […] More

Central Bank of the Republic of Colombia Tightens

April 26, 2014

The Board considers that macroeconomic stability and the current convergence of inflation towards the long term goal, are compatible with a slightly less expansive monetary policy stance, a little less expansive than the current one. With that explanation, a 14-month-long low in Colombia’s central bank interest rate was terminated.  The rate was raised to 3.5% […] More

Central Bank of Colombia Extends Policy Pause

June 28, 2013

After six 25-basis point cuts in Colombia’s main interest rate between July 2012 and February 2013, the ante was doubled to 50 bps at the March meeting, but the ensuing three meetings in April, May and now June resulted in no change to the 3.25% interest rate.  Growth has responded positively to the monetary stimulus […] More

Central Bank of the Republic of Colombia Cuts Interest Rate as Expected

February 22, 2013

A sixth 25-basis point interest rate reduction since July 2012 was announced by Colombia’s central bank in a unanimous 5-0 vote after “taking into account that the Colombian economy is growing below its potential, observed and projected inflation lie below the 3% target, and nowhere can be seen upward pressures on it in the near […] More