Colombia’s central bank increased its benchmark interest rate by another 100 basis points to 12% on December 16th following market predictions, bringing borrowing costs to their highest level since 2001 after the inflation rate continued to rise in November. The annual inflation rate increased for the sixth consecutive month in November, reaching 12.53%, the highest level since March 1999 and higher than anticipated by the market.
According to a statement from the central bank of Colombia, four of the seven members supported the decision, with one supporting a raise of 125 basis points and the other voting for a rise of 25 basis points.
By the end of this quarter, the interest rate in Colombia is anticipated to be 12.00 percent. From 1998 to 2022, Colombia’s interest rate averaged 8.66 percent, with record highs of 32.00 percent in May 1998 and 1.75 percent in September 2020.
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