Colombia's central bank holds rate at 12.25% and buys $2 bln in reserves
Colombia's central bank kept its benchmark rate at 12.25% and approved a $2 billion purchase from the government to bolster reserves, Reuters reports.
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what happened
Colombia's central bank board voted by a majority to keep its benchmark interest rate at 12.25% on Friday. The decision came amid forecasts of slower economic growth and uncertainty about public finances, board chief Leonardo Villar said at a press conference.
The board also approved buying $2 billion from the government to strengthen the bank's reserves. In a Reuters poll of 31 analysts this week, 17 expected a 25 basis point increase to 12.5%, one forecast a 75 basis point rise to 13%, and the remaining 13 expected no change. Third-quarter economic data is due in mid-November and is expected to show signs of a slowdown.
why it matters
The hold came in softer than most analysts had expected, which the market may read as a restrained response to a weakening economy. The regulator's next steps and the November data will shape the outlook for the peso and local bonds.
market impact
Colombian peso and local bonds: a rate below expectations weakens currency support
- Colombian peso pressure down — holding rates instead of the expected hike reduces the peso's appeal for carry trades
tags
instruments
sources
- Colombia central bank holds rate, will shore up reserves with $2 bln — Reuters, 30 October 2026 at 18:32 UTC
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