BanRep Blog: Monetary Policy and Liquidity Supply
This entry describes the monetary policy model used by Banco de la República (the Central Bank of Colombia) and explains its resemblance to the one used by central banks in both developed and emerging economies.
Publication Date:
Friday, 06 September 2024
17:00
Followers of monetary policy and inflation are familiar with the decisions made by the Board of Directors of Banco de la República regarding the monetary policy interest rate (MPR), which experiences periods of increase and decrease, always aiming to keep inflation around its 3.0% target. This rate serves as a benchmark to determine the cost of funding that Banco de la República provides to the banking system to meet its liquidity needs.
