The Colombian central bank opted to again not make any change to the nation’s benchmark interest rate, leaving it steady at 4.25%.
The decision to maintain the current rate was approved unanimously by all seven members of the board of the Banco de la República.
In choosing not to intervene, the Banco de la República cited a stable inflation rate in June that, at 3.2%, remained within its target range of 2%-4%. The bank’s analysts project inflation to close the year at 3.37% and continue around that level through the end of 2019, when it projects the rate to sit at 3.33%.
The central bank continues to project gross domestic product (GDP) growth of 2.7%, citing first quarter results and current indicators for the second and third quarter expectations. Though this still represents “low growth,” according to the Banco de la República, it is “higher than that registered in 2017,” contributing to its decision to not lower the rate.