Central Bank of Colombia

Central Bank of the Republic 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

An Eighth Interest Rate Hike for Colombia

January 30, 2012

Analysts were not expecting another monetary tightening until next month, but the 7-person Monetary Board of the Central Bank of Colombia just announced a 25-basis point increase of its overnight benchmark rate to 5.0%.  This was the eighth such increase since February 2011 and the first one since November 25.  A statement observes that on-year […] More