Colombia’s Banco de la República raised interest rates to 12 percent on June 30, 2026, an increase of 75 basis points from 11.25 percent. The decision came during the central bank’s penultimate meeting of the year.
Four directors voted in favor of the hike to 12 percent, two supported a 50-basis-point reduction and one voted to keep rates unchanged. Rates have risen 275 basis points since the start of 2026, when they stood at 9.25 percent.
General manager Leonardo Villar noted that annual inflation reached 5.8 percent in May and core inflation hit 6.0 percent, moving away from the 3 percent target. Inflation expectations remain volatile and above the goal.
Finance Minister Germán Ávila attended the meeting and warned that the measure will have negative impacts on economic growth. The government had advocated for a rate cut.
