The Banco de la República decided to keep the interest rate at 9.25% for October 2025, citing inflation rising for the third consecutive month. President Gustavo Petro reacted by stating that rates will only fall with the next board appointment. Manager Leonardo Villar clarified that the next appointment is scheduled for February 2029.
The board of directors of the Banco de la República announced on October 31, 2025, that the policy intervention rate will remain at 9.25%, a level stable since April this year. This decision was made in the seventh meeting of the year, following a previous 25 basis point cut. Four codirectors voted to maintain it, two for a 50 basis point reduction, and one for 25 basis points.
Total inflation in September rose to 5.2%, the same as at the end of 2024, for the third consecutive month, while core inflation stayed at 4.8%. Inflation expectations, from surveys and the public debt market, exceed 3% for the next two years. The bank highlighted the dynamism of internal demand, driven by private and public consumption, and a rebound in investment in machinery and civil works. Externally, financial conditions have eased due to U.S. rate cuts, though the trade deficit is widening from higher imports.
President Gustavo Petro commented: "the interest rate will only fall when we choose the next member of the Banco de la República's board." Villar replied: "the next scheduled appointment of a board member will be in February 2029," and denied knowledge of resignations. Three 2021 codirectors—Bibiana Taboada, Jaime Jaramillo-Vallejo, and Mauricio Villamizar—end their terms this year, but there are no signs of immediate vacancies.
The technical team projects 2.6% growth for 2025 and 2.9% in 2026, with inflation approaching 3% in 2027. Analysts like Jackeline Piraján from Scotiabank Colpatria explained that high rates encourage saving over excessive credit, stabilizing instruments like CDTs. The Ministry of Hacienda insists on a gap between the real rate and the neutral rate that would allow cuts to reactivate the economy. Some experts, like Skandia, anticipate a possible cut to 9% by year-end, but most expect stability.