The Board of Directors of Banco de la República, by a majority vote, opted to reduce the benchmark rate by 50 basis points to 10.75%
Five directors voted in favor of this decision, and two voted for a 75 bp reduction. In its policy discussion, the Board of Directors considered the following elements:
Publication Date:
Wednesday, 31 July 2024
17:38
- Annual inflation in June remained stable at 7.2%, in line with expectations. Annual inflation excluding food and regulated items decreased from 6.1% to 6.0%, while food inflation over the same horizon increased from 4.4% to 5.3% due to climatic factors, and inflation for regulated items decreased from 13.7% to 13.3%.
- The Bank's monthly survey of economic analyst expectations performed in July reported stable sample median inflation expectations, although those derived from public debt markets fell across all horizons.
- GDP would remain on a recovery path in the second quarter, with varying performances across sectors. The Bank’s technical staff anticipates that economic activity levels will continue to grow, reaching 1.8% in 2024.
- External financing conditions have become less restrictive owing to expectations of more accommodative monetary policies by the major central banks of advanced economies.
Today’s monetary policy decision gives a new boost to economic growth recovery while maintaining the necessary prudence in light of persistent risks to the inflation outlook. The Board of Directors reiterates that future decisions will be determined based on new information available.
