Banco de la República general manager Leonardo Villar said monetary policy will keep rates high until inflation returns to the 2%-4% target range. The move followed the board's latest meeting.
Leonardo Villar explained that 2026 inflationary pressures, driven by the minimum wage adjustment and the Middle East war, forced the central bank to raise the rate to 12%. Inflation rose from about 4.8% a year ago to above 6.1% now.
The 75-basis-point hike passed with four votes in favor, two for a 50-point cut and one for no change. Villar said rates will remain high until inflation returns to target.
Villar held a courtesy meeting with President-elect Abelardo de la Espriella, where he backed the central bank's independence. The current rate is the highest in two years.
