The central bank of Colombia left the benchmark interest rate unchanged at 4.25 percent on its August 30tb 2019 meeting, as widely expected. Policymakers unanimously voted to leave the rate unchanged for the 16th straight month. The annual inflation rate jumped to 3.79 percent in July from 3.43 percent in June to surpass market expectations of 3.71 percent and was a high since December 2017, mostly boosted by food prices.Policymakers project that other supply shocks could cause inflation to increase in the coming months, but it is expected to resume its convergence to the target range later. The Committee said that they will continue to monitor developments in the inflation rate, economic activity and balance of payments and take actions depending on new data. Interest Rate in Colombia averaged 8.72 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 4.50 in 12 months time. In the long-term, the Colombia Interest Rate is projected to trend around 5.00 percent in 2020, according to our econometric models.