The Board of Directors of the Banco de la Republica has unanimously decided to keep the monetary policy rate unchanged at 1.75%
During today’s meeting, the Board of Directors of the Banco de la Republica unanimously decided to hold the policy rate at 1.75%. This decision was made on the basis of the following considerations:
- Inflation in October stood at 1.75% and expectations for 2021-2023 are anchored at around 3%.
- The most recent indicators of economic growth confirm the predicted recovery rate for activities, and this development is expected to continue in 2021.
- Although the labor market continues to improve, it reflects severe structural problems.
- The loan portfolio and interest rates continue to respond to monetary policy stimuli.
- External financial conditions remain favorable for financing the Colombian economy.
Under these conditions and considering the risk balance, the Board unanimously decided to keep the benchmark rate at 1.75%.