Projections point to a 100 basis point increase in the interest rates of the Banco de la República
This Tuesday, the Issuer will make decisions on interest rates. Photo: Fb Banrep
TL;DR
- Analysts predict a 25 to 100 basis point increase in the Banco de la República's interest rates.
- A previous 100 basis point hike in January aimed to counter inflation driven by wage increases and unmet inflation targets.
- Inflation expectations remain high, with core inflation accelerating, indicating persistent price pressures.
- The Break-Even Inflation rate also suggests continued upward pressure on interest rates.
- Some analysts, like those from Asobancaria, project a full 100 basis point increase to 11.25% due to persistent inflation above 5%.
- This rate hike is seen as a measure to curb inflation amid uncertainty, with further gradual increases anticipated throughout 2026.