Central Bank of Colombia
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, […] More
25-Basis Point Hike of Central Bank of Colombia’s Interest Rate
April 28, 2023
A split vote agreed to yet another 25-basis point interest rate hike at April’s monetary policy review. The new 13.25% interest rate is the third increase of 2023, defying expectations of a pause. Two of the seven policymakers favored not changing the rate level, but a separate minority of one voted for a 50-basis point […] More
Colombian Central Bank Hike
March 30, 2023
The Central Bank of Colombia’s policy interest rate has been lifted by only 25 basis points to 13.0%. Similar to most countries around the world where central banks target inflation, consumer prices in Colombia with a 12-month 13.25% rise is currently running way above the objective, which in Colombia’s case is 3.0%. A year ago, […] More
Gloomy Finale to 2022
December 19, 2022
Global confidence has suffered a succession of shocks: the Covid pandemic in 2020, heightened doubts about America after Trump’s attempted coup in 2021, and Putin’s unstable invasion of Ukraine in 2022. Financial markets will be putting their books to bed over these last two weeks of 2022, hoping for better times but conditioned to a […] More
A 50 Basis Point Colombian Central Bank Rate Hike with Three Dissenters Favoring a Larger Increase
December 17, 2021
Colombia’s monetary policy rate was raised today to 3.0% from 2.5%. This increase followed hikes of 25 basis points in September and 50 bps in October, and it was decided by a thin 4-3 vote where the disagreement pertained to how much to tighten rather than whether to lift the rate again or not. Three […] More
Interest Rate Hike in Colombia
November 1, 2021
The Central Bank of Colombia‘s policy interest rate was lifted by a greater-than-anticipated 50 basis points to 2.5%. An initial 25-basis point increase occurred in September. After the pandemic hit in 2020, the rate was slashed from 4.25% to 1.75% in seven incremental moves. Some of the other central banks to raise interest rates since […] More
Summits and Manufacturing PMI Releases
November 1, 2021
All Saints Day 2021 marked the end of one summit and start of another and the release of manufacturing purchasing manager surveys for a number of economies. In overnight market action, Equities rallied 2.6% in Japan, over 1% in India, and so far between 0.8% and 1.2% in Germany, France, Italy and Spain. U.S. stock […] More
Central Banks in Mexico and Colombia Lift Interest Rates by 25 Basis points
September 30, 2021
The Bank of Mexico’s overnight interest rate, which had been cut by 25 basis points in February to culminate a cumulative reduction of 325 basis points over a one-year period, has been subsequently raised by 25 basis points three subsequent times to 4.75% to counter rising inflation and ensure that inflation will settle back to […] More
Dollar Loses More Ground as Trump’s Reelection Prospects Improve
September 1, 2020
On the heels of a weak performance in August, the dollar fell another 0.8% against sterling overnight and also lost 0.5% relative to the euro, kiwi, and peso, 0.4% versus the yuan, 0.3% vis-a-vis the loonie, and 0.1% against the yen and Australian dollar. It also costs more dollars today than yesterday to buy commodities […] More
Central Bank of Colombia
July 1, 2020
The Central Bank of Colombia’s policy interest rate was reduced 25 basis points to a record low of 2.50%. The decision drew one dissent. CPI inflation slowed over a half percentage point in May, and both it and expected inflation are now below the 3% objective. Colombia’s labor market has deteriorated recently, and recovery in […] More
