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"Not everybody in Colombia has access to the modern economy, and that in itself is an important inequality that needs to be addressed," said Deaton.

The 3.99% rate is 38 basis points below the 4.37% annual inflation seen in May and less than half of the 8.60% rate in June 2016.

The central bank said its decision was based upon “growing weakness of economic activity."

"Bogota's ratings reflect its solid operating performance and its manageable debt levels,” said Fitch Ratings.

"The next administrations in both Chile and Colombia will face challenges to achieving fiscal consolidation," said Fitch.

"The economy is slowing down or not growing much, and on the inflation side we have good news but not good enough," said Echavarría.

With inflation nearing the central bank's target range, some analysts are now wondering if the central bank will make another 50-basis-point cut Colombia's interest rate.

The announcement reaffirms a credit line originally approved by the IMF in June 2016. Colombia’s policymakers say they view this as merely a precautionary source of capital.

After Brazil (51% negative) and Colombia (20%), Fitch Ratings has assigned negative outlooks to 19% of corporates in Chile, 12% in Peru, 9% in Mexico, and 6% in Argentina.

Most analysts are equating the underwhelming growth to low consumption following the recent tax hike that increased Colombia's VAT by 3%.