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“Colombia's creditworthiness could be pressured” if low growth persists and high fiscal deficits undermine the government’s push to reduce debt.

With Mexican pension funds now subject a 0% tax rate, Colombia's finance minister expects the incentive to "attract new resources to finance companies and projects" in the country.

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.

Colombian Minister of Finance Mauricio Cardenas will sit on three of the four committees.

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."

Fitch noted Colombia improving macroeconomic imbalances, current account deficit reduction, and falling inflation rate.

"I don't have the slightest doubt that the worst has already passed," said Cárdenas while predicting better economic growth this year than the 2.0% seen in 2016.

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

“We have to wait for the results of the tax reform," analyst Richard Francis told Finance Colombia in New York.

Finance Minister Mauricio Cardenas says the overhaul "is a difficult measure that will require a large sacrifice of all Colombians — but it is necessary."