Central bank raises rates by 200 basis points amid rising inflation

7 Mwezi wa tano, 2026

Imeripotiwa na AI

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.

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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.

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.

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

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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.

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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.

Ijumaa, 8. Mwezi wa tano 2026, 23:40:47

Central bank raises rates by 200 basis points amid rising inflation

Makala yanayohusiana

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

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

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

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

Villar and Ávila debate impacts of monetary policy decisions

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

Milei cuts rates despite inflation alarms

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

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Banxico ends rate cut cycle and sets rate at 6.50%

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Petro attributes housing contraction to Banco de la República rates

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