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Banco de la República board unanimously holds interest rate at 11.25% in meeting with Finance Minister amid inflation and political tensions.
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Banco de la República unanimously holds interest rate at 11.25%, defying hike expectations amid government tensions

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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.

Leading economists gathered at a seminar hosted by the Egyptian Center for Economic Studies to discuss how digital currencies are reshaping the global financial landscape. They highlighted unprecedented challenges to monetary policy and the need for flexible regulatory frameworks. Speakers emphasized innovation opportunities alongside significant risks.

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The European Central Bank (ECB) has kept its Eurozone deposit rate at 2.0 percent. Despite sharply rising prices and heightened inflation expectations, the ECB refrained from a rate hike. Investors now anticipate moves from June onward.

Colombia's inflation is projected at 4.9% for 2026, missing the Banco de la República's target range for the sixth consecutive year. A Corficolombiana report estimates it will close 2025 at 5.2%, roughly the same as last year, signaling a stall in disinflation. The goal of nearing 3% is now delayed until 2027.

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Cuba's Central Bank introduced a third official floating exchange rate of 410 pesos per US dollar on December 18, 2025, adding to the existing rates of 24 and 120 pesos. The measure aims to capture foreign currency from the informal market and progress toward gradual monetary unification. Officials defend the change as responsible, though doubts remain about its impact on the economic crisis.

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