The central bank of Colombia decided to cut its benchmark interest rate by 50 bps to a record low of 2.75 percent during its May 29th 2020 meeting, as widely expected. The move follows a similar margin cut on April 30th, amid the coronavirus crisis. Policymakers noted that the annual inflation fell to 3.5 percent in April from 3.9 percent in March, and it is expected to continue to slow due to weak demand, spare production capacity and labour market deterioration. The Committee added that the risk balance suggests the convenience of providing an additional boost to the economy. The decision was not unanimous, with 5 members voting for the cut and the rest for a 25-bp reduction.
Interest Rate in Colombia averaged 8.70 percent from 1998 until 2020, reaching an all time high of 32 percent in May of 1998 and a record low of 2.75 percent in May of 2020. This page provides the latest reported value for - Colombia Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Colombia Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on June of 2020. source: Banco de la República de Colombia
Interest Rate in Colombia is expected to be 2.75 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 3.00 in 12 months time. In the long-term, the Colombia Interest Rate is projected to trend around 3.75 percent in 2021 and 4.25 percent in 2022, according to our econometric models.