Colombia | Banco de la Republica reduced its policy rate by 50 bp to 10.75%

Summary

The Board of Banrep reduced its monetary policy rate by 50 bp, bringing it to 10.75%. This decision was divided, with 5 members voting for the 50 bp reduction and two members voting for a larger reduction of 75 bp.

Key points

• Key points:
• The Banrep Board's statement highlights that the stability observed in total inflation, at around 7.2% in recent months, is in line with the expectations of the Issuer's Staff.
• On the activity front, the Bank's Staff revised the growth forecast upward, from 1.4% to 1.8% annual for 2024. This improved outcome is based on the activity indicators that have been published so far this year.
• On the external front, the Bank highlighted that financing conditions have improved and are looser, mainly due to an expectation of more accommodative policies in some of the main central banks.
• Regarding the interest rate, once again the consensus among the members of the Board to lower rates was highlighted, and that the differences remain in the rate, not in the trend.

Geographies

Topics

Tags