Monetary Policy

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Why is it essential to have a low and stable inflation rate?

 

A low and stable inflation rate improves the well being of the population. This is manifested in various ways:

 

What does Banco de la República do to reinforce and inform monetary policy decisions?

It emphasizes its commitment to bring inflation in line with the target as the primary objective of monetary policy, according to the constitutional mandate to maintain the purchasing power of the Colombian peso and to help improve the well-being of the population.

The purpose of the monetary policy

 

The primary objective of monetary policy is to reach and maintain a low and stable inflation rate, and to achieve a long-term GDP growth trend.

 

This is the only way to achieve sustained growth rates that will generate employment and improve the population’s quality of…

The Board of Directors of the Central Bank of Colombia (BDBR) unanimously reduced the benchmark interest rate by a quarter percentage point to 2.0%

The Board of Directors of the Central Bank of Colombia (BDBR) unanimously reduced the benchmark interest rate by a quarter percentage point to 2.0%. For this decision, the Board mainly took into account the following elements:

The Board of Directors of the Banco de la Republica is holding the inflation target at 3%

The Board of Directors is keeping the inflation target (annual change in the CPI) at 3% within a range between 2% and 4%.

The Board of Directors will continue careful monitoring of inflation trends, economic activity, the forecasts for these variables, and the international situation and…

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:

The Board of Directors of Banco de la República will also assess monetary policy conditions in May, August, and November 2020

At its meeting in November 2017, the Board of Directors of Banco de la República (BDBR) adopted a new scheme for monetary policy decisions, according to which, ordinarily, no monetary policy decisions would be made in the months of February, May, August, and November each year.

The Board of Directors of Banco de la República unanimously maintained the benchmark interest rate at 1.75%

The Board of Directors of Banco de la República, at today’s meeting, unanimously decided to maintain the benchmark interest rate at 1.75%. For this decision, the Board mainly took into account the following elements:

The Board of Directors of Banco de la República unanimously decided to maintain the Benchmark Interest Rate at 4.25%

In this decision, the Board took into consideration primarily the following information:

The Board of Directors of Banco de la República unanimously decided to cut the Benchmark Interest Rate by one fourth of a Percentage Point to 2.25%

The Board of Directors of Banco de la República (BDBR) unanimously decided to lower the Benchmark Interest Rate by one fourth of a Percentage Point to 2.25%. This decision took the following elements into consideration:

The Board of Directors of Banco de la República reduced the Benchmark Interest Rate by one -fourth of a Percentage Point to 2.50%

The Board of Directors of Banco de la República (BDBR), by majority, reduced the Benchmark Interest Rate by half a Percentage Point to 2.50%. In this way, it continues with the countercyclical monetary policy stance.

This decision took the following elements into consideration: 

The Board of Directors of Banco de la República reduced by half a percentage point the benchmark interest rate to 3.25%, and took additional measures to provide liquidity to the economy

[Video] Press Conference with the Governor of the Central Bank of Colombia

Juan José Echavarría, Governor, and Hernando Vargas, Deputy Technical Governor, answer questions from analysts and journalists related to the decision reached today by the Board of Directors.

The Board of Directors of Banco de la República holds the inflation target at 3.0% for 2022

Act 31/1992 stipulates that the Board of Directors of Banco de la República must define and announce the inflation target. In accordance with this legal mandate, the BDBR is prepared to announce that it has set a target of 3.0% within a range of 2.0% to 4.0%. Inflation has risen…

The Board of Directors of Banco de la República (the Central Bank of Colombia) takes new liquidity measures

On Monday 16 March 2020, the members of the Board of Directors of the Central Bank met with the Technical Deputy Minister of Finance in the morning, and with the Financial Superintendent in the afternoon, to monitor market dynamics, indicators of the financial system, and the results of the…

The Board of Directors of Banco de la República (the Central Bank of Colombia, BDBR) reduced the benchmark interest rate by a quarter percentage point to 1.75% with a 4-3 vote

For this decision, the Board mainly took into account the following elements:

The Board of Directors of Banco de la República (BDBR), by majority, reduced the Benchmark Interest Rate by half a Percentage Point to 2.75%

The Board of Directors of the Central Bank of Colombia (BDBR), by majority, reduced the benchmark interest rate by half a percentage point to 2.75%. In this way, it continues with the countercyclical monetary policy stance.

This decision took the following elements into consideration:

The Board of Directors of Banco de la República (BDBR) adopted additional measures regarding liquidity, and unanimously cut the benchmark interest rate half a percentage point to 3.75%.

 [Video] Press Conference with the Governor of the Central Bank of Colombia

Juan José Echavarría, Governor, and Hernando Vargas, Deputy Technical Governor, answer questions from analysts and journalists related to the decision reached today by the Board of Directors.

Sale of US dollars through non-delivery forward contracts

Banco de la República (the Central Bank of Colombia) will roll over forward contracts maturing in November.

At its meeting today, the Board of Directors of the Central Bank (BDBR) decided to roll over non-delivery forward contracts for the sale of US dollars through auctions held on the…

Renewal of NDFs by the Central Bank of Colombia

On 27 March 2020, Banco de la República announced that the maturities of NDFs that expired before 25 April 2020 would be renewed.

This announcement was mistaken in the sense that the date announced should have been that of the day following the April meeting of the Board of Directors.…

Purchases / Sales of TES, Foreign Exchange, and TES Portfolio Holdings by Banco de la República

Banco de la República (the Central Bank of Colombia, BR) hereby informs that in September 2020 it did not make any purchases or sales of TES B in the market. At the end of September, the outstanding balance of TES held by BR was COP $20,779.3 billion (value at market prices).

The TES…