- The Bank of the Republic of Colombia will announce its monetary policy decision today Monday at 6:00 p.m.
- The entity is expected to cut interest rates at 25 basic points up to 9.25%.
- The Colombian weight is strengthened on Monday after three days of falls.
The Bank of the Republic of Colombia will announce on Monday around 18.00 GMT its monetary policy decision. The market awaits a cut in interest rates of 25 basic points (PB), which would place the types in 9.25% from the current 9.50%.
The Bank of the Republic of Colombia can place interest rates at its lowest level since July 2022
The Colombian Central Bank reached its highest level in interest rates in decades in April 2023, raising them to 13.25%. In December of that same year, the cycle of cuts began and since then it has been alternating consecutively discounts of 25 bp to 50 bp, with the exception of the January meeting, where it left them unchanged in 9.5%.
The market consensus expects Colombia to resume types of types at 25 basic points, taking them to 9.25%, a level not seen since July 2022.
According to the Financial Opinion Survey of the National Association of Financial Institutions (ANIF), 55% of experts expect the Bank of the Republic of Colombia to rescue rates at 25 basic points, while the remaining 35% is committed to keeping them without changes in 9.5%.
The focus will be on the rebound in inflation in Colombia and the impact of US tariffs.
It is expected that within the Board of Directors of the Bank of the Republic there are divergent positions, since two members of it were recently appointed by Colombian President Gustavo Petro and debut today in the vote. Petro has been favorable in recent months to produce larger features, but the rise in February inflation can make the reduction moderate, as expected.
The consumer price index (CPI) of Colombia rose to 5.28% per year from 5.22% in January, reaching its highest level in four months, and exceeding market expectations, which expected a decrease to 5.13%.
The other problem for decision making comes from the front of tariffs. The announcement is published on Monday, two days before the president of the United States report on reciprocal tariffs that will apply to imports to the US from the rest of the countries. On April 3, rates for the automobile sector that import cars or pieces to the United States will also begin to be applied. It is not yet known to what extent these tariffs will have an impact on Colombia, but many analysts foresee price increases in basic products for the country, such as coffee and sugar.
How would it affect a 25 bp of Colombian weight? What if there is no trim or is it greater than expected?
The Colombian weight is strengthening this Monday after three days weakening. Today’s increase has caused the USD/COP to fall to a daily minimum of 4,174.2 and operate when writing about 4,197.3, losing 0.13% in the day.
In the event that the Bank of the Republic of Colombia indicates in its statement that its interest rates does not vary, the Colombian peso could roughly rebound, taking the USD/COP to the surroundings of 4,100/4,098, where the minimums of the Pasda week are, before being able to go back to the level of 4,065, March floor recorded on the 17th.
On the contrary, a cut of 25 basic points would not have to have an impact on the most hay price of the current movement, since it is taken for granted. If the reduction out of 50 basic points, the Colombian weight could weaken, with the USD/COP rising around 4,210, where Friday made a maximum of almost two months.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.