The central bank of Colombia left the benchmark interest rate unchanged at 4.25 percent on Thursday March 22nd 2019, as widely expected. The central bank has kept the rate at its current level since last April, when they cut the monetary rate by 25 bps. Policymakers noted that the annual inflation rate fell to 3.01 percent in February from 3.15 percent in January, the lowest since 2014, and it is expected to remain somewhat above 3 percent. The Committee added that the new economic activity figures for the first quarter of 2019 suggest that the economy would grow at a faster pace than the previous quarter and it is projected a 3.5 percent expansion for 2019. Policymakers said that they will continue to monitor carefully the behaviour of inflation and projections of economic activity in the country, as well as the international situation. Interest Rate in Colombia averaged 8.73 percent from 1998 until 2019, reaching an all time high of 32 percent in May of 1998 and a record low of 3 percent in May of 2010.
Interest Rate in Colombia is expected to be 4.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Colombia to stand at 4.75 in 12 months time. In the long-term, the Colombia Interest Rate is projected to trend around 4.75 percent in 2020, according to our econometric models.