Publications

The Central Bank kept its policy rate at 9.25% for the fourth consecutive meeting, a decision reflecting caution amid persistent inflation risks and the ongoing economic recovery.

The Bank of the Republic maintained its benchmark interest rate at 9.25% in a divided decision by its Board, reflecting its cautious stance amid persistent inflation and fiscal risks. The institution also announced the cancellation of the Flexible Credit Line with the IMF.

In July, the Central Bank of Colombia kept the policy rate at 9.25% in a split decision. Although headline inflation eased slightly and economic activity showed more momentum, the Board highlighted the stability of core inflation and inflation expectations, as well as strong domestic demand, justifying a restrictive stance.

The Board of Banrep reduced the monetary policy rate by 25bp to 9.25% in April. This decision was unanimous. On this occasion, they highlighted that inflation and inflation expectations derived from the debt markets declined.

The Board of the Banco de la República kept the policy rate unchanged at 9.5% in a split decision (4 to 3). The decision was based on inflationary and fiscal risks, as well as external uncertainty.

Diverging monetary policy between China and the US remains after Trump’s victory, leading to a longer time China-US policy rate reversion.

Banxico looked past the jump in headline inflation, rightly so in our view, with core inflation easing and cut the policy rate by 25bp to 10.75%, as we anticipated. It anticipates that lower inflation pressures may allow further rate cuts going forward.