Monetary Policy

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Banco de la República maintains the benchmark interest rate at 4.25%

The Board of Directors of Banco de la República, in its meeting today, unanimously decided to maintain the benchmark interest rate at 4.25%

The Board took into consideration the following information:

Banco de la República maintains the benchmark interest rate at 4.25%

The Board of Directors of Banco de la República, in its meeting today, unanimously decided to maintain the benchmark interest rate at 4.25%. For this decision, the Board mainly took into account the following aspects:

Banco de la República transforms its Communication Scheme for Monetary Policy Decisions

At its meeting on 30 August 2019, the Board of Directors of Banco de la República (the Central Bank of Colombia) adopted a new communication scheme for monetary policy decisions. The purpose of these changes is to facilitate the understanding of the decisions by the markets and the general...

Banco de la República unanimously maintains the benchmark interest rate at 4.25%

The Board of Directors mainly took into consideration the following information:

Banco de la República unanimously maintains the benchmark interest rate at 4.25%

For this decision, the Board mainly took into account the following information:

Foreign Exchange Intervention Policy

Banco de la República's policy strategy seeks to maintain a low and stable inflation rate, as well as to achieve an output level close to its potential. In addition, the Central Bank's policy contributes to preserve financial stability as well as stability of the payments system. The flexibility...

Good Practices - Transparency

Transparency is fundamental for the accountability of independent central banks. Inasmuch as they have been given greater independence, transparency in these institutions is considered as a mechanism to provide society with the ability to evaluate if a central bank's actions are consistent...

How does Monetary Policy affect the Economy?

Whenever the Central Bank changes the interest rate for REPO operations (also known as the benchmark intervention rate)  it sets into motion a series of forces which, with a certain lag, affect market interest rates, the exchange rate, and inflation expectations, which in turn influence:

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How is the Monetary Policy implemented in Colombia?

In order to implement the monetary policy, it is necessary to determine the desired inflation target and the policy instruments to be used. Starting in 2010, the Board of Directors of Banco de la República adopted the long-term inflation target that had been proposed since the beginning of the...

INTERNATIONAL RESERVES PROGRAM PRESS RELEASE

The upcoming auction of the program for the accumulation of international reserves through PUT options will be held on 1 April 2019, in the amount of USD 400 million.

The options will be in force between 2 and 30 April 2019.

Monetary Policy Decision-Making in an Environment of Uncertainty

Monetary policy decision-making requires that two fundamental questions be answered: (1) How is the economy doing? and (2) Where is the economy headed?  The need to assess the status of the economy both in the present and prospectively is due to the fact that the instruments of monetary policy...

Monetary policy in an uncertain environment

 

Monetary policy should continuously assess the state of the economy, as well as its future developments and prospects over the next four to eight quarterly terms. It is during this time span that changes in interest-rate intervention rates have their effect on other interest rates and...

Monetary Policy: The Inflation-Targeting Strategy in Colombia

Monetary policy in Colombia is governed by an Inflation Targeting strategy, thats purpose is to maintain a low and stable inflation rate and to reach output growth in line with the potential capacity of the economy. This means that the objectives of monetary policy combine price stability with...

PRESS RELEASE PROGRAM OF ACCUMULATION OF RESERVES

At its meeting today, the Board of Directors of the Central Bank decided to continue with its program for the accumulation of international reserves.

The upcoming auction of the program for the accumulation of international reserves through PUT  options will be held on 30...

The purpose of the monetary policy

 

The primary objective of monetary policy is to reach and maintain a low and stable inflation rate, and to achieve a long-term GDP growth trend.

 

This is the only way to achieve sustained growth rates that will generate employment and improve the population’s quality of...

Why is it essential to have a low and stable inflation rate?

 

A low and stable inflation rate improves the well being of the population. This is manifested in various ways:

 

Why is it important to keep Inflation low and stable?

A low and stable inflation improves the well-being of the population. This takes place in several ways: