The Board of Directors of Banco de la República decided by majority vote to maintain the benchmark rate unchanged at 12%
Four directors voted in favor of this decision, and three directors opted for a 50-basis-point increase. In its policy discussion, the Board considered the following:
Publication Date:
Friday, 31 de July de 2026
15:50
- Headline inflation continued to rise in June to reach 6.1%, driven mainly by food and regulated items. Annual food inflation increased to 6.8%, while regulated items inflation rose to 5.9%. Core inflation, excluding food and regulated items, remained stable at 6.0%.
- According to the July analyst survey, median inflation expectations for December 2026 and 2027 rose to 6.6% and 5.0%, respectively. Inflation expectations derived from the public debt market remained above 6.0% across all horizons.
- Information available for the second quarter suggests that the Colombian economy appears to have gained momentum. The Economic Monitoring Indicator (ISE) posted an annual increase of 4.1% in May, driven by the strong performance of tertiary activities. Other activity indicators available through June support this assessment. Consistent with this outlook, the technical staff projects 2026 GDP growth of 2.5%. The national unemployment rate continued to decline, ending June at 8.0%.
- The persistent appreciation of the Colombian peso has exceeded that of several comparable currencies. This exchange rate behavior reflects a combination of external and domestic factors and has helped ease inflationary pressures.
- The conflict in the Middle East and the heightened likelihood of an El Niño event could intensify inflationary pressures and hinder economic growth.
The decision adopted by the majority of Board members maintains a restrictive monetary policy, consistent with expectations of a downward inflation trajectory in 2027. Future decisions will rely on new information as it becomes available.
