Colombia Raises Interest Rate by 0.25% for October
Colombia’s Central Bank (Banco de la Republica, in Spanish) decided Wednesday to raise its interest rate by 0.25 percentage points, from 12% to 12.25%, in a decision that breaks with several months of stability and keeps the cost of money at a high level. The adjustment, backed by a majority of four members of the […]
Colombia increased its interest rate by 0.25% in October to combat inflation and international instability. The Central Bank (Banco de la Republica) raised the rate from 12% to 12.25% in a decision backed by four out of six board members. Inflation remains well above the 3% target, with the August consumer price index reaching 6.24%, the highest since July 2024.
The decision comes amid rising inflation, the El Niño phenomenon, international uncertainty, and the economic impact of the August 10 earthquake. Banco de la Republica Governor Leonardo Villar cited persistent inflationary pressures as the reason for the increase, while new Finance Minister Miguel Gomez highlighted the earthquake's financing needs and the unfavorable global economic environment, including rising oil prices and US interest rates.
The increase leaves the rate at a high 12.25%, making borrowing more expensive for households and businesses. Villar emphasized the central bank's goal of aligning fiscal and monetary policies, with the potential for rate adjustments once inflation declines.
Written by urgent.news from Colombia One's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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