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The central bank again expressed concern about economic weakness on top of low domestic demand and low external demand.

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."

"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 25-point cut narrowly won the day among central bank board members with a 4-3 vote. All three dissenters preferred another 50-point reduction.

One analyst firm believes the move "to step up the pace of interest rate cuts is a clear response to the weakness of the recent activity data."

The February rate is down from 5.47% in January — and a marked decrease from the 8.97% seen in July 2017.

The bank's second interest rate cut in three months, amid falling inflation, marks a major course change.

Dissenting central bank members "held that it would be prudent to keep the benchmark rates stable."