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This marks the second straight month with no intervention, putting a definitive end to the prior 11 months of rate hikes.

A drop in inflation was expected — but "its magnitude was much greater than we anticipated," said Bancolombia. A sharp decline in food prices fueled the major rebound.

The Banco de la República had pushed the interest rate up by 325 basis points over the previous 11 months to curb out-of-control inflation.

The inflation rate in Colombia has hit yet another 16-year high, rising to 8.97% in July compared to 8.60% in June. Consumer prices jumped much more than expected.

This marks the 11th consecutive month that the Banco de la República has intervened in a fight against an inflation rate that has hit a 16-year high.

Colombia's troubling current account deficit, external debt, and government deficit have led Fitch to assign the country a negative outlook.

“This strike, which lasted 45 days, has been very costly for everyone,” said Colombia President Juan Manuel Santos in announcing the deal reached with the truckers.

"There is little room for policymakers to leave interest rates on hold," according to Capital Economics analyst Adam Collins.

The Colombian capital ranks 190th out of 209 cities analyzed in a new study by Mercer — representing a drop of 42 spots from its 2015 edition.

To fight the highest inflation Colombia has seen in 15 years, the nation's central bank raised its benchmark interest rate, up 25 basis points to 7.5%, for the tenth consecutive month.