Colombia - Riba

The central bank of Colombia unanimously decided to keep its benchmark interest rate steady at 4.25 percent during its 31 October 2019 meeting, as widely expected. Policymakers noted that the annual inflation rate rose modestly to 3.82% in September from 3.75% in August, and kept their expectation that supply shocks will start to dilute at the end of the year and inflation will converge to the target range. The Committee affirmed its GDP growth forecasts at 3.2%, revised in September. Policymakers said that they will continue to monitor the economic activity and inflation outlook, balance of payments and the external conditions. The Committee also reiterated that monetary policy will depend on new data available.

The central bank of Colombia kept its benchmark interest rate steady at 4.25 percent during its September 23rd 2019 meeting, as widely expected. Policymakers noted that the annual inflation rate fell to 3.75% in August from 3.79% in July and it is expected that supply shocks will start to dilute at the end of the year and inflation will converge to the target range. The Committee added the better economic activity was a main reason behing the revision of GDP growth to 3.2% from 3%. Policymakers said that they will continue to monitor the economic activity and inflation outlook, balance of payments and the external conditions. The Committee also reiterated that monetary policy will depend on new data available.

The central bank of Colombia left the benchmark interest rate unchanged at 4.25 percent on its August 30tb 2019 meeting, as widely expected. Policymakers unanimously voted to leave the rate unchanged for the 16th straight month. The annual inflation rate jumped to 3.79 percent in July from 3.43 percent in June to surpass market expectations of 3.71 percent and was a high since December 2017, mostly boosted by food prices.Policymakers project that other supply shocks could cause inflation to increase in the coming months, but it is expected to resume its convergence to the target range later. The Committee said that they will continue to monitor developments in the inflation rate, economic activity and balance of payments and take actions depending on new data.

The central bank of Colombia left the benchmark interest rate unchanged at 4.25 percent on its July 26th 2019 meeting, as widely expected. Policymakers unanimously voted to leave the rate unchanged for the fifteenth straight month, noting that new information suggested that economic output growth for the second quarter will likely outperform supported by investment in machinery and equipment and public consumption. The annual inflation rose to 3.43 percent in June from 3.31 in the prior month mostly boosted by cost of food and it is projected that other supply shocks could cause inflation to increase in the coming months, but it is expected to resume its convergence to the target range later. The Committee said that they will continue to monitor developments in the inflation rate, economic activity and balance of payments and take actions depending on new data.

The central bank of Colombia left the benchmark interest rate unchanged at 4.25 percent on 21 June 2019, as widely expected. Policymakers noted that economic activity for the first quarter of the year was weaker than expected. It also noted that inflation could go higher than the current 3.31 percent due to transitory supply shocks. The Committee also mentioned that the current account deficit of 4 percent of GDP is still expected to be covered by FDI.

The central bank of Colombia left the benchmark interest rate unchanged at 4.25 percent on April 26th 2019, as widely expected. Policymakers noted no significant changes regarding inflation expectations and also mentioned that global growth prospects declined since the previous meeting. The Committee also reiterated a 3.5 percent domestic growth forecast for 2019. The annual inflation rate in Colombia increased to 3.21 percent in March 2019 from 3.01 percent in the prior month and above market expectations of 3.17 percent.