The Bank of the Republic of Colombia has decided to keep its interest rate unchanged, placing it at 9.25%, in line with the estimates of analysts.
The decision has not been made unanimously, since Four directors voted in favor of not making changes, two for a reduction of 50 bp and one for 25 bp.
Statement from the Bank of the Republic of Colombia
The monetary authority stressed that inflation expectations from the surveys remained at levels higher than the goal and reflect the perception that the convergence of inflation to the 3% goal would be slower than the foregoing foreseen.
The Central Bank said that the increase in the expected fiscal deficit constitutes a challenge for the sustainability of public finances and reduces the margin of maneuver for the relaxation of monetary policy. He added that the economy expanded 2.7%in the first quarter, exceeding the prognosis of the technical team (2.5%) and the growth recorded in the last quarter of 2024 (2.6%).
Colombian weight reaction
The Colombian weight has lost traction after the news, with the USD/COP reaching maximums of June 18 at 4,101.00. At the time of writing, the torque operates about 4,092.00, winning 1.15%.
Source: Fx Street
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