In Colombia, interest rate decisions are taken by The Central Bank of Colombia (The Banco de la República). The Banco de la República implements monetary policy by changing interest rates, which either provide or withdraw liquidity from the economy. The official interest rates are the intervention interest rates (Tasas).
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The Central Bank of Colombia raised its policy rate by 100 bps to 10.25% in its January mmeting where four board members voted for the increase, two voted for a 50 bp reduction and one voted to keep the rate unchanged. The board noted that headline inflation in December was 5.1%, slightly below end-2024 (5.2%), while core inflation rose to 5.02% and inflation expectations jumped in January, analysts’ median rose to 6.4% for end-2026 and to 4.8% for end-2027, with market-based two-year expectations above 6%. Indicators for the fourth quarter suggest the economy maintained good dynamism and the technical team estimates GDP grew 2.9% in 2025. The current-account deficit is estimated at 2.4% of GDP for 2025. Uncertainty about external conditions remains elevated due to trade tensions, migration measures in the US, geopolitical conflicts and sovereign-risk perceptions. The committee said the decision is aimed at bringing inflation onto a declining path.