The Constitution and constitutional jurisprudence assign Banco de la República the specific mission of preserving the currency’s purchasing power. This translates into the objective of achieving and maintaining a low, stable inflation rate, in tandem with general economic policy, while taking into account economic growth.
What has happened to the benchmark interest rate in 2026?
Given its mandate to control inflation, the Board of Directors of Banco de la República increased the policy interest rate from 9.25% in December 2025 to 12% in July 2026, at a time when prices were rising rapidly, and household and government spending continued to exceed sustainable levels.
Related BanRep Blog: Balancing Inflation and Growth through the Implementation of Monetary Policy by Banco de la República
Banco de la República is working to bring inflation back to the 3% target while ensuring that the impact of this convergence on economic growth remains as negligible as possible. Keeping inflation low and stable is a fundamental precondition for the economy to grow sustainably over time....
