Colombia’s Central Bank Holds Rate at 12.25%
Colombia's central bank kept its main rate at 12.25% on Friday 30 October 2026 in a 4-3 vote, with three directors wanting a hike. The post Colombia’s Central Bank Holds Rate at 12.25% appeared first on The Rio Times .
On Friday, 30 October 2026, Colombia's central bank, Banco de la República (Banrep), kept its main interest rate at 12.25%, but the bank's board split 4-3 on whether to raise it by a quarter of a percentage point. Three directors wanted to increase the rate, indicating the bank is close to another hike. The decision matters for US investors as low rates attract bond investors and slow growth.
Banrep is the country's central bank, and its policy rate affects every loan in the nation. Inflation slowed to 6.3% in September, below market expectations, but core inflation, excluding food and regulated prices, eased to 6.0% from 6.1%. The bank predicts inflation of about 6.9% in December 2026 and 4% in two years, still higher than the 3% target.
El Niño, a warm Pacific weather pattern, could raise food and regulated prices. Banrep warned that the economy lost momentum in the third quarter due to weaker private and public spending and soft factory and retail data. It also noted that the government's economic rescue bill is a key factor in inflation outlook. Banrep will keep its policy restrictive, in line with a gradual fall in inflation during 2027, and it has not ruled out another increase.
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