The central bank of Colombia raised its benchmark interest rate by another 100bps to 6% in its April 29th meeting, in line with market expectations. The move marked the sixth rate hike since the gradual tightening of conditions began in September 2021, bringing borrowing costs to the highest level since May of 2017. The decision was driven by persistently high price pressures and uncertainty around the international outlook. The annual inflation rate in Colombia accelerated to a six-year high of 8.5% in March, almost triple the 3% target laid out by the central bank. Inflation is expected to fall during the rest of the year and end around 7% in 2022, but is not expected to return to the target within the next two years. Meanwhile, the economy is now seen expanding by 5%, above an earlier estimate of 4.7%. The board meeting is the last before the presidential election in May, with a leftist candidate who has repeatedly criticized the central bank tightening stance, leading the polls. source: Banco de la República de Colombia
Interest Rate in Colombia averaged 8.65 percent from 1998 until 2022, reaching an all time high of 32 percent in May of 1998 and a record low of 1.75 percent in September of 2020. This page provides the latest reported value for - Colombia Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Colombia Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on June of 2022.
Interest Rate in Colombia is expected to be 7.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Colombia Interest Rate is projected to trend around 7.50 percent in 2023 and 5.50 percent in 2024, according to our econometric models.