19.12.202518:28:52UTC+00Colombia Central Bank Holds Interest Rate at 9.25%

In November 2025, the Central Bank of Colombia opted to maintain its benchmark interest rate at 9.25%. This decision was supported by four members of the board, while two advocated for a 50 basis point reduction and one proposed a 25 basis point cut. The board highlighted that October's inflation figures remained higher than the projected levels for the end of 2024, and that inflation expectations for the forthcoming one to two years had risen. The country's GDP experienced a year-over-year growth of 3.4% in the third quarter, surpassing initial predictions, largely driven by a 5.6% increase in total consumption. Policymakers also pointed to fiscal uncertainties resulting from the unapproved Financing Law and reported a current account deficit of 2.4% of GDP for the third quarter. Although global financial conditions remain accommodating due to further interest rate reductions by the US, significant geopolitical risks continue. The bank has reiterated its cautious approach, stating that future monetary policy decisions will rely on the evolving dynamics of inflation, economic performance, and both domestic and international risk factors.