Economy & Business - February 2026

COLOMBIA | Interest rate hiked. Colombia’s central bank (Banrep) raised its benchmark interest rate by 100 basis points to 10.25% on 30 January. This was the first increase to the rate since April 2023, and it comes after it had been held at 9.25% since April 2025. Banrep noted in a statement that annual inflation in 2025 was 5.1% – down from 5.2% in 2024, but above the target rate of 3%. The bank said that analysts’ median inflation forecast for 2026 had risen from 4.6% to 6.4%. Meanwhile, economic activity was strong in the final quarter of 2025, due to strong internal demand resulting from private and public spending, bringing total estimated growth last year to 2.9%, according to Banrep. The statement also noted “elevated” uncertainty about the external economic situation, highlighting “risks associated with an escalation of trade conflicts, US migration measures, geopolitical conflicts, and the perception of Colombia’s sovereign risk”.