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Finance Minister Germán Ávila walked out of a central bank board meeting, accusing it of going against Colombia’s national interests and deepening institutional tensions.

While the fall was slightly better than expected, the positive difference is likely not enough to radicalize the central bank into taking more drastic measures.

Banco de la República cut by 50 bps to 12.25%, but despite words expressing the "magnitude" of the cut, it was the absolute minimum they could have done.

Banco de la República left interest rates at 13.25%, a terminal rate that needs to come down ASAP. The cut doesn't need to be radical but at least signal that the easing cycle has begun.

Looking at macro indicators, one is left shaking their head as to what the central bank saw two weeks ago when it raised rates to 13.25%.

Year over year Q1 GDP came in at 3.0% versus a consensus expectation of 3.5%, and the QoQ number of 1.4% actually beat the estimate of 1%.

“The dynamics of the domestic demand were weaker than expected” in the third quarter, stated the central bank.

The October rate is up slightly from 3.97% last month and puts inflation outside of the central bank’s target rate for the first time since June.

The move continues a year-long rate-cutting trend but surprised a market that expected the Banco de la República to leave the rate steady.

The Banco de la Repúblcia said that its decision was impacted by the "weakness in economic activity."