Scotiabank Previews This Week's Policy Meeting at The Central Bank in Colombia

09:00 AM EDT, 09/29/2025 (MT Newswires) -- Most expect Colombia's central bank (BanRep) to hold its overnight lending rate at 9.25% on Tuesday, said Scotiabank.

First up is consideration of the signals being sent by the Board, which is made up by the minister of finance, who presides over the Board, and six members including the governor, noted the bank.

The decision to hold at its last meeting on July 31 was supported by four members, as only one advocated a 25bps cut and two favored a 50bps cut. This divide may stand or strengthen in favor of a hold at this meeting, stated Scotiabank.

One major reason for this is that inflation data since that decision has been somewhat warmer than consensus expected, added the bank. July ticked higher to 4.9% year over year and August again moved higher to 5.1%. Core consumer price index has been holding around 4.9% year over year.

Both readings are far above BanRep's 3%, more or less one percentage point target range. Inflation expectations also remain "elevated and sticky," according to Scotiabank.

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