Colombia

Colombia’s central bank governor cautioned against hasty interest rate reductions, which could necessitate future increases, amidst ongoing high inflation and potential price surges due to the El Nino phenomenon. Despite a recent modest rate cut to 12.75%, opinions within the board diverge on the extent of rate reductions. Current inflation stands at a two-year low of 8.4%, yet significantly exceeds the 3% target, with core inflation at 9.7%, underscoring persistent economic challenges.