What does Banco de la República do to reinforce and inform monetary policy decisions?
It emphasizes its commitment to bring inflation in line with the target as the primary objective of monetary policy, according to the constitutional mandate to maintain the purchasing power of the Colombian peso and to help improve the well-being of the population.
It analyzes different economic indicators and uses a variety of models with different approaches (statistical and forecasting, structural and simulation) to improve its economic forecasting capacity.
- It performs sensitivity analyses to assess risks. For example, it analyzes how inflation forecasts change in different national and international scenarios.
- It maintains a first-rate technical staff who are well-versed in the latest developments in analysis and economic techniques used internationally.
- It conducts research to help understand the workings of the economy and to develop better analytical methods.
- It interacts with other central banks and remains open to the opinions of the academic community by conducting and participating in seminars and discussion forums on issues that are central to the Colombian and world economy.
- It organizes regular meetings with various sectors of Colombian society (businessmen, workers, economic analysts, the Colombian Congress, etc.) to learn about their points of view and to explain the Bank’s decisions and the outcome of its policies.
- It applies a policy of transparency by announcing and explaining the monetary policy measures adopted by the Bank.
