MNI BanRep Review - Apr 2025: Unanimous Vote To Resume Easing

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Executive Summary

• The Colombian central bank unexpectedly decided to cut the overnight lending rate by 25bp to 9.25% at its April meeting, against most analyst expectations for no change.
• Notably, the decision was unanimous, contrasting with the previous meeting in March which had revealed a striking split in the Board. The decision was driven by a resumption of the downward trend of inflation and a deterioration in the growth outlook.
• Analysts expect rate cuts to continue ahead, with year-end forecasts in a 7.50-8.25% range.