MNI BanRep Review - Mar 2025: On Hold, Easing Bias Maintained

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Executive Summary

• The Colombian central bank decided to keep the overnight lending rate unchanged at 9.50% at its March meeting, in line with most analyst expectations. The decision was split 4-3, with three members voting for a 50bp reduction.
• Concerns over rising inflation and on-going inflation risks prompted the central bank to stay on hold. However, the Board still has an easing bias and will consider additional rate cuts ahead, dependent on the incoming data.
• Analysts expect cautious rate cuts to resume, potentially later this month, with the policy rate perhaps falling as far as 8.0% this year.