Colombia’s central bank left its benchmark interest rate unchanged at 12.0% on July 31. The bank highlighted that annual inflation accelerated to 6.1% in June, mainly due to higher food and regulated prices, while core inflation remained stable at 6.0%.
Inflation expectations for the end of 2026 and 2027 rose to 6.6% and 5.0%, respectively, with market-based measures still above 6.0%. The bank also noted that economic activity strengthened in the second quarter, supported by solid growth in the services sector, and it maintained its GDP growth forecast for 2026 at 2.5%. The unemployment rate declined to 8.0% in June.
A stronger Colombian peso has contributed to easing inflationary pressures. However, the bank warned that risks stemming from the conflict in the Middle East and a possible El Niño event could rekindle inflation and dampen growth. It reiterated that future policy decisions will remain dependent on incoming economic data.
