Central bank raises rates by 200 basis points amid rising inflation

7 مايو، 2026

من إعداد الذكاء الاصطناعي

Technical manager Hernando Vargas presented the Banco de la República's Monetary Policy Report, highlighting the interest rate hike and lower-than-expected GDP growth.

Hernando Vargas, technical manager of Banco de la República, explained that total inflation reached 5.6% in the first quarter of 2026, an increase of 0.5 points since December. Core inflation hit 5.8%, after rising 0.8 points.

The board raised the interest rate by 200 basis points between January and March to restore a disinflationary stance. Vargas stated that "it is evident that raising interest rates brings down inflation and not the other way around".

First-quarter GDP grew 2.1%, below the 3.2% forecast. The issuer now projects 2.4% growth for 2026 and 2.1% for 2027, while inflation would end 2026 at 6.4% and fall to 3.7% in December 2027.

Banco de la República unanimously holds interest rate at 11.25%, defying hike expectations amid government tensions

30 أبريل، 2026 من إعداد الذكاء الاصطناعي صورة مولدة بواسطة الذكاء الاصطناعي

In its May 1, 2026 board meeting, Banco de la República unanimously kept the benchmark interest rate at 11.25%, surprising analysts expecting a hike to combat accelerating inflation. Finance Minister Germán Ávila participated fully, citing constructive dialogue, while board members justified the decision to maintain stability amid political pressures.

Colombia's central bank raises rate to 11.25% in second 2026 hike amid government walkout

Following its January hike to 10.25%, Colombia's Banco de la República raised its intervention rate by another 100 basis points to 11.25% in a tight 4-3 vote during its second meeting of the year. Finance Minister Germán Ávila walked out of the board meeting and announced the government's withdrawal from the central bank over disagreements. President Gustavo Petro backed the move and criticized the monetary policy.

Analysts project year-end inflation at 6.32% and rates at 12.25%

20 أبريل، 2026 من إعداد الذكاء الاصطناعي

The Banco de la República released its Monthly Survey of Economists' Expectations, forecasting year-end inflation at 6.32% and interest rates at 12.25%. These projections mark an upward revision from March. Experts anticipate a gradual moderation in subsequent years.

أمريكا

Banxico cuts interest rate to 6.75% despite inflation and Middle East tensions

سياسة

Villar and Ávila debate impacts of monetary policy decisions

أمريكا

Ávila hosts rate forum sans Villar, pegs hike cost at $1.8T debt interest

Milei cuts rates despite inflation alarms

Argentina's central bank cut short-term reference rates to 20% this month, below inflation levels, to capitalize on dollar inflows and rebuild hard currency reserves. President Javier Milei's government aims to boost economic growth amid slowdown signals. Analysts note concerns over peso stability impacts.

Strong expectations for 1-2% cut in Egypt's interest rates

11 فبراير، 2026 من إعداد الذكاء الاصطناعي

Egypt's Central Bank Monetary Policy Committee is expected to cut interest rates by 1-2% at its first 2026 meeting on Thursday. This comes amid core inflation easing to 11.2% in January. Experts support the move to boost economic growth while maintaining stability.

08 مايو 2026 23:40