The central bank of Colombia left the benchmark interest rate unchanged at 4.25 percent on Thursday 31 January 2019, as widely expected. The decision was taken on the back of sluggish growth and favorable inflation expectations. The annual inflation rate eased to a four month-low of 3.18 percent in December from 3.27 percent in the prior month. The bank expects growth close to 3.5% in 2019 and inflation convergence towards the 3% target. Interest Rate in Colombia averaged 8.73 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 4.75 percent in 2020, according to our econometric models.