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    Published on Monday, March 31, 2025

    Colombia | Banco de la República maintained its policy rate stable at 9.5%

    Summary

    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.

    Key points

    • Key points:
    • The interest rate remained at 9.5% with a divided vote (4 in favor of maintaining stability, 3 in favor of a 50bps cut).
    • Headline inflation stood at 5.3% with pressures from regulated prices and food, while core inflation declined slightly to 4.9%.
    • The Bank emphasized fiscal vulnerability as a key factor in its decision, given its potential impact on country risk and the exchange rate.
    • Economic growth showed signs of improvement, with the GDP forecast for 2025 revised upward from 2.6% to 2.8% driven by a better performance in the first quarter.
    • Future decisions will depend on the evolution of inflation, tax revenue, and the external environment, with a possible rate cut in the coming months if significant improvements are observed.

    Geographies

    Authors

    Alejandro Reyes González BBVA Research - Principal Economist

    Documents and files

    Report (PDF)

    Banco de la República maintained its policy rate stable at 9.5%

    English - March 31, 2025

    Report (PDF)

    Banco de la República maintained its policy rate stable at 9.5%

    Spanish - March 31, 2025

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