Banco de la República holds its benchmark interest rate

At a meeting today, the Board of Directors of Banco de la República decided to leave its benchmark interest rate at 9.50%. 

Annual inflation went from 5.16% in October to 5.41% in November, primarily due to food prices.  Added to this were the increases in regulated prices and those for tradable goods. Inflation in non-tradable goods, excluding food and regulated prices, continued to decline and was 5.27%. 

The figures show that economic growth remains positive and the country’s monetary policy continues to have an effect in terms of curbing some of the growth in credit.  However, as a result of added uncertainty in international markets, estimates of economic growth for our major trading partners were revised downward.  

The Board will continue to carefully monitor the impact international economic difficulties could have on growth.  It also will keep an eye on the trend in inflation pressure originating outside the country, particularly pressure exerted by international food and fuel prices. 

Finally, it reiterated that monetary policy in the future will depend on new information and how it affects projected inflation in light of the targets.