Banco de la República governor explains why the interest rate is not being cut

FinanceColombiaEl Universal (Cartagena)Oct 22, 2026, 9:41 PM40 s readAI summary

Banco de la República governor Leonardo Villar Gómez explained at Camacol's Colombian Construction Congress in Cartagena why the monetary policy interest rate is not being cut. Villar said he would "love" to lower it sustainably, but noted that keeping rates high is a requirement for inflation to fall. He attributed inflationary pressures to the sharp minimum wage increase, a larger primary fiscal deficit and strong growth in domestic demand. He acknowledged that high rates affect housing construction.

In 40 seconds

Villar said he would "love" to cut rates, but not artificially or under conditions that create future problems.
The central bank's inflation target is 3.0%, with a tolerance range of one percentage point.
He cited three factors: the 23% minimum wage increase in 2026, the primary fiscal deficit rising to 3.5% in 2025 and domestic demand growing 4.8% in the second quarter.

Read the full story at El Universal (Cartagena)

IASummary generated by artificial intelligence from a story by El Universal (Cartagena). It may contain errors: the original source prevails.

Banco de la República
tasas de interés
inflación
construcción
Camacol

Comments

Be respectful. Comments reported by several people are hidden until a moderator reviews them.

You do not need an account to read, only to comment. Sign in with a code sent to your email or with your Google account. We only show the name you choose, never your email.

Keep reading

Bogotá Ciudad Aeropuerto seeks to link El Dorado with the Metro and Regiotram
The District Planning Secretariat presented the Bogotá Ciudad Aeropuerto initiative, which seeks to connect El Dorado International Airport with urban growth, mobility and productive processes in the capital and the region, and to include it in the 2026-2030 National Development Plan. The project envisions linking the airport with the Bogotá Metro and Regiotram, creating a Civil Aviation and Innovation Center and an aerospace training campus, and promoting investment in aircraft maintenance, aeronautical manufacturing and logistics.
FinanceColombiaPulzo5:06 AMAI
IMF backs economic rescue bill as Banco de la República calls for rigor in its review
The International Monetary Fund expressed support for the economic rescue bill submitted by Colombia's national government to Congress, calling it a significant step to address the fiscal challenges inherited by the new administration and to strengthen the country's fiscal sustainability. Banco de la República general manager Leonardo Villa asked for the bill to be studied rigorously, while the government warned of negative consequences if it is not approved. The legislative debate is set to begin in the coming weeks.
FinanceColombiaNoticias RCNNov 3AI
Parks and attractions in Colombia generated US$1.095 billion in 2024, according to IAAPA
Colombia's parks and attractions industry generated US$1.095 billion in revenue in 2024, 57% more than the US$698 million recorded in 2022, according to a study by the Global Association for the Attractions Industry (IAAPA). The country ranks sixth in sector revenue in the region. Visitors topped 11.2 million in 2024, 45.5% more than the previous year, and the offering reached 988 attractions, with museums and science centers as the largest group.
FinanceColombiaEl TiempoNov 3AI
President requests urgent congressional passage of fiscal adjustment bill
President Abelardo de la Espriella asked Congress to give urgent and insistent passage to the fiscal adjustment bill promoted by Finance Minister Miguel Gómez, citing Article 163 of the Constitution and Law 5 of 1992. The request, also signed by acting Interior Minister Iván Cancino, gives the bill full priority and convenes joint committee sessions. The initiative includes a 15% reduction in the state structure and tax adjustments that would affect the household basket.
FinanceColombiaPulzoNov 3AI

Banco de la República governor explains why the interest rate is not being cut

In 40 seconds

Comments

Keep reading

Bogotá Ciudad Aeropuerto seeks to link El Dorado with the Metro and Regiotram

IMF backs economic rescue bill as Banco de la República calls for rigor in its review

Parks and attractions in Colombia generated US$1.095 billion in 2024, according to IAAPA

President requests urgent congressional passage of fiscal adjustment bill