Colombia | Banrep: The Conscience of Responsibility

Summary

The Bank of the Republic will maintain stable interest rates through the remainder of 2025, with gradual reductions in the second half of 2026. This cautious approach responds to persistent inflation, strong consumption dynamics, and fiscal risks.

Key points

• Key points:
• The policy rate will remain at 9.25% by the end of 2025, with gradual cuts during 2026.
• Inflationary rigidity, particularly in services, keeps the Bank in a cautious mode.
• The economy is driven by dynamic domestic consumption, which adds potential inflationary pressures.
• The high deficit and suspension of the fiscal rule complicate the scenario and limit room for rate cuts.

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