The central bank of Colombia kept the benchmark interest rate unchanged at 4.25 percent on Friday 21 December 2018, as widely expected. Policymakers noted that economic activity remains sluggish and inflation expectations remain well-anchored. They also underscored the 25-bps hike by the Fed earlier in the week. The annual inflation rate in Colombia edged down to 3.27 percent in November of 2018 from 3.33 percent in the previous month and compared to market expectations of 3.34 percent. Interest Rate in Colombia averaged 8.74 percent from 1998 until 2018, 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 4.50 in 12 months time. In the long-term, the Colombia Interest Rate is projected to trend around 4.50 percent in 2020, according to our econometric models.