BanRep keeps benchmark rate at 13.25% to prevent monetary decisions from influencing upcoming presidential vote.
Colombia’s central bank unexpectedly left its benchmark interest rate unchanged at 13.25% in a unanimous decision. Policymakers aimed to avoid politicizing monetary policy ahead of the country’s presidential election runoff later this month.
The hold breaks a streak of 12 consecutive rate hikes, with the last increase in April. Analysts had widely anticipated a 25-basis-point hike, given persistent inflation above the bank’s 2%-4% target range. Annual inflation stood at 12.82% in April, down slightly from March’s peak.
Markets reacted with a modest rally in Colombian peso bonds, while the currency remained largely stable against the USD.