Colombia's central bank holds its policy rate at 12% as June inflation rises to 6.1%

Colombia's central bank left its benchmark interest rate unchanged at 12% on Friday 31 July 2026. The bank said annual inflation rose to 6.1% in June, driven by higher food and regulated prices, while core inflation held steady at 6.0%.

According to the statement, inflation expectations for the end of 2026 and 2027 increased to 6.6% and 5.0% respectively, with market-based expectations remaining above 6.0%. The bank also said economic activity strengthened in the second quarter, supported by robust growth in the services sector, and it maintained its 2026 GDP growth forecast at 2.5%. The unemployment rate fell to 8.0% in June.

The central bank added that a stronger Colombian peso has helped ease inflationary pressures, but that risks from the West Asia conflict and a potential El Niño event could fuel inflation and weigh on growth, with future policy decisions remaining data dependent. Colombia is one of Latin America's oil producers, and its central bank's explicit reference to the West Asia war shows how far the region's energy shock has reached into monetary policy in distant countries.