Colombia | BanRep increased its benchmark rate in 25bp to 2.0%

Summary

In September, BanRep increased in 25bp the monetary policy rate to 2.0%. The vote was divided, with 3 members in favor of a 50bp increase. The Staff reviewed their activity, inflation and current account deficit forecasts upward. With this move the Bank starts a rate hiking cycle.

Key points

• Key points:
• BanRep increased interest rates in 25bp to 2.0%.
• There was a divided vote, with three members in favor of a stronger rate increase.
• The Staff reviewed their activity, inflation and current account forecasts upward.
• With this movement, the Bank starts a rate hiking cycle that may be faster than initially expected.

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