Colombia interest rate held at 12.25% in October 2026
Colombia's central bank left its policy rate at 12.25% on 30 October 2026, with three of seven directors voting for a rise and inflation still above 6%.
The facts
- The board of Colombia's central bank left the policy rate unchanged at 12.25% on 30 October 2026, deciding by majority rather than unanimously.
- Four directors voted to hold and three voted for a 25 basis point increase.
- Annual headline inflation rose to 6.3% in September, slightly below what the market had expected.
- Core inflation excluding food and regulated items fell to 6.0% in September from 6.1% in August.
- Analysts moved their December 2026 inflation forecast up to 6.9%, while two-year expectations stayed near 4.0%; the target is 3%.
- The board said annual growth had probably slowed in the third quarter, citing weaker domestic demand and poor performance in manufacturing and retail, and described its stance as restrictive.
What it means for your money
- Colombian mortgages reprice off this rate. Three of seven directors wanted it higher, so credit costs face upside.
- An owner already carrying peso or UVR debt on a Colombian flat gets no cut this quarter, and a split board makes the next move harder to time than a unanimous one.
- Glopra data puts the Colombian city-centre average at USD 2,570 per square metre and rent at USD 13.93 per square metre a month, a 6.5% gross yield — roughly half the 12.25% policy rate, so leveraged purchases carry negative spread before costs.
- Inflation at 6.3% against a 3% target keeps real peso depreciation on the table, which cuts the dollar value of rent collected locally.
What to watch
- The next board meeting and the December inflation print decide whether the three hawkish votes become a majority.
- The policy rate is not the mortgage rate: Colombian peso and UVR housing loans price above it, and the gap is set by each lender.
Sources: Banco de la Republica https://www.banrep.gov.co/es/noticias/junta-directiva/junta-directiva-octubre-2026; Infobae https://www.infobae.com/colombia/2026/10/30/banco-de-la-republica-mantuvo-la-tasa-de-interes-en-1225-por-decision-mayoritaria/