Colombia Central Bank Expected to Raise Interest Rates

Colombias central bank is expected to raise its benchmark interest rate to curb persistent inflation. Analysts remain divided as some forecast a hold while awaiting economic data.

FILE PHOTO: The logo of Colombia's Central Bank is pictured after the bank's board voted by majority to raise the benchmark interest rate by 25 basis points to 12.25%, in Bogota, Colombia, September 30, 2026. REUTERS/Luisa Gonzalez/File Photo

Colombia's central bank board is expected to raise its benchmark interest rate by 25 basis points to 12.5% on Friday amid persistent inflationary pressures. The potential move follows 325 basis points in cumulative hikes so far in 2026 as policymakers attempt to anchor price stability. Investors are weighing whether further monetary tightening will curb domestic demand or compound a broader economic slowdown.