Colombian Central Bank Rate Cut
January 31, 2024
The Central Bank of Colombia’s key interest rate was lowered today by 25 basis points to 12.75%. Although a cut had been widely expected, many analysts were anticipating a 50-bp size, and indeed two of the seven committee members had favored the bigger reduction. Today’s is the second consecutive 25-basis point easing of the rate, which crested at 13.25% from April 2023 until the December cut. The rate had been as low as 1.75% for the twelve months ending September 2020. Monetary officials lifted the rate to 3.0% by end-2021, 12.0% by end-2022, and and a peak of 13.25% by April 2023. Colombian inflation peaked at 13.3% in May 2023 and slowed to 9.3% by last month. The future path of the policy rate will be guided by inflation, which officials hope will return to the 3.0% target.
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Colombia
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