Publications

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.

The Board of Directors of the Central Bank decided to maintain the reference interest rate at 4.75% in February. The monetary policy position thus remains somewhat restrictive.

The Board of BanRep kept the policy rate unchanged at 9.5%. Notably, concerns persist regarding inflation, exchange rate volatility, and fiscal uncertainty.

Domestic demand is driving Colombia's economic recovery, with GDP projected to grow by 2.0% in 2024 and up to 3.5% by 2026. Investment and consumption, particularly in durable goods, will fuel growth, while inflation and interest rates continue to decline.

Domestic demand will lead Colombia’s economic recovery, driven by improved financial conditions that will strengthen consumption and investment. This will provide a significant boost to sectors such as manufacturing and retail. In the long run, increasing investment will be essential to raise the country’s growth potential.

Output will grow 2,9% this year (previous forecast: 2,7%), supported by a new pension funds withdrawal. Sectors affected by weather anomalies in 2023 will recover and non-primary sectors too thanks to increased private spending. In 2025, once the impact of pension funds withdrawals is exhausted, growth would reach 2,7%.

We present a summary and analysis of the most relevant developments and publications in Mexico's financial regulatory landscape.