FX.co ★ Colombia Holds Rate at 9.25%

In September 2025, the Central Bank of Colombia opted to maintain its benchmark policy rate at 9.25%. The decision saw a split among the directors: four supported holding the rate steady, while two advocated for a 50 basis point reduction, and one preferred a 25 basis point cut. In August, the annual inflation rate decelerated to 5.1%, and core inflation, which excludes food and regulated items, remained at 4.8%. These figures are both higher than the projections made by the technical team, suggesting a more protracted path towards achieving the 3% inflation target. Inflation expectations have increased, with analyst surveys projecting inflation rates of 5% for 2025 and 4% for 2026. Market-based expectations similarly exceed the target. The economy experienced a 2.5% year-on-year growth in the second quarter, driven by robust domestic demand, stable consumption, and recent investment gains, especially in civil construction and machinery and equipment. The Board highlighted that future policy decisions will be shaped by the trajectory of inflation and its expectations, the dynamics of economic activity, and the balance of internal and external risks.