The central bank of Colombia left the benchmark interest rate unchanged at 4.25 percent on 21 June 2019, as widely expected. Policymakers noted that economic activity for the first quarter of the year was weaker than expected. It also noted that inflation could go higher than the current 3.31 percent due to transitory supply shocks. The Committee also mentioned that the current account deficit of 4 percent of GDP is still expected to be covered by FDI. Interest Rate in Colombia averaged 8.72 percent from 1998 until 2019, reaching an all time high of 32 percent in May of 1998 and a record low of 3 percent in May of 2010.
Interest Rate in Colombia is expected to be 4.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Colombia to stand at 4.50 in 12 months time. In the long-term, the Colombia Interest Rate is projected to trend around 5.00 percent in 2020, according to our econometric models.