Colombia Holds Rate at 9.25%

The Central Bank of Colombia left its benchmark policy rate unchanged at 9.25% in September 2025, with four directors voting to maintain, two for a 50 bps cut and one for 25 bps. Annual inflation slowed to 5.1% in August, while core inflation excluding food and regulated prices held at 4.8%, both above technical team forecasts, pointing to a slower convergence toward the 3% target. Inflation expectations have risen, with analysts’ surveys placing them at 5% for 2025 and 4% for 2026, while market-based expectations also remain above target. Economic activity grew 2.5% year-on-year in Q2, supported by resilient domestic demand with steady consumption and recent gains in investment, particularly in civil works and machinery and equipment. The Board emphasized that future policy moves will respond to the evolution of inflation and its expectations, economic activity dynamics, and the internal and external risk balance.