The Central Bank of Colombia kept its benchmark interest rate unchanged at 12.25% at its October 2026 meeting, in line with market expectations. The Board of Directors noted that annual inflation in September inched up to 6.3%, coming in slightly below forecast, while core inflation eased from 6.1% in August to 6.0% in September. Even so, the El Niño weather phenomenon poses a significant upside risk to the outlook for food and regulated prices. Inflation expectations for December 2026 rose marginally to 6.9%.
The Board also highlighted that Colombia’s annual economic growth is estimated to have slowed in the third quarter compared with the previous quarter. Indicators of domestic demand point to weaker consumption growth in both the private and public sectors. The Board underscored the importance of a thorough review of the Economic Rescue Bill submitted to Congress, stressing that the trajectory of public finances will be a key determinant of future monetary policy decisions.
