Colombia Interest Rate

The Central Bank of Colombia left its benchmark policy rate unchanged at 9.25% in October 2025, with four directors voting to maintain, two for a 50bps cut and one for 25bps. Annual inflation rose to 5.2% in September while core inflation excluding food and regulated prices remained at 4.8%, both above the 3% target and signalling slower convergence. Inflation expectations increased and survey and market measures now sit above the target for the next two years. Indicators point to continued dynamism in domestic demand led by private and public consumption and a rebound in investment in machinery and equipment and civil works. External financial conditions have eased following US rate cuts, while the trade deficit widened as imports rose faster than exports amid strong domestic demand. The Board emphasised that future policy moves will respond to the evolution of inflation and its expectations, the dynamics of economic activity, and the balance of internal and external risks.