On June 30, 2026, the Central Bank of Colombia’s board voted by majority to raise the benchmark rate by 75 basis points to 12%, aiming to put inflation back on a downward path as price pressures, expectations and domestic demand remained firm; four directors backed the move, while two preferred a 50-basis-point reduction and one voted to leave the rate unchanged. The board said total inflation rose to 5.8% in May and core inflation excluding food and regulated items reached 6.0%, moving further away from target, while inflation expectations were volatile in 2026 and remained above target across all horizons despite a partial reversal in market-based measures in June. On activity, seasonally adjusted annual GDP growth was 2.2% in the first quarter of 2026 and domestic demand continued to outpace output, while the labor market showed historically low unemployment at 8.0% in May alongside significant wage gains. The board also cited high external uncertainty linked to the conflict in the Middle East, with effects on international fuel and fertilizer prices and on financial markets’ reactions to monetary policy decisions in advanced economies, and said future decisions will depend on incoming information.
Central Bank of Colombia2026-06-30
Central Bank of Colombia Raises Benchmark Rate by 75 Basis Points to 12%
On June 30, 2026, the Central Bank of Colombia raised its benchmark rate by 75 basis points to 12% to steer inflation back onto a downward path, citing persistent price pressures, elevated inflation expectations and firm domestic demand. The board noted total inflation at 5.8% and core inflation at 6.0% in May, first-quarter 2026 GDP growth of 2.2%, historically low unemployment and strong wage gains, while flagging external risks from the Middle East conflict and advanced-economy monetary policy.