Banco de la República Rate October 2026: Held at 12.25%

Colombia’s central bank paused. On October 30, 2026, the Banco de la República board kept its policy rate at 12.25%, even though most analysts had expected a hike. For anyone in Medellín earning dollars and spending pesos, here is what the October 2026 Banco de la República interest rate decision means.

Quick answer: The board voted 4–3 to hold at 12.25%. The three dissenters wanted a 25-basis-point increase, according to Banrep’s official communiqué and Portafolio. (A basis point is one-hundredth of a percentage point.)

October 2026 interest rate decision: what the board decided

This follows our pre-decision preview, which cited an Anif survey in which 13 of 19 entities expected 12.50%.

The communiqué says the decision keeps a restrictive stance, consistent with the bank’s outlook for lower inflation in 2027. The statement did not explain each director’s reasoning, per Portafolio.

It is the second straight close call. On September 30 the board raised the rate to 12.25% from 12.00% with four votes for 25 bp, two for a hold and one for 50 bp, as we previewed in our September 30 post.

Meeting	Rate	Result
June 30, 2026	12.00%	Hold
July 31, 2026	12.00%	Hold
September 30, 2026	12.25%	+25 bp
October 30, 2026	12.25%	Hold, 4–3

Sources: Vanguardia, June 30, Vanguardia, July 31, Vanguardia, September 30 and the Banrep communiqué.

Why the board paused: inflation, growth and the rescue bill

According to the Banrep communiqué:

• Annual inflation edged up to 6.3% in September, slightly below market expectations. (DANE’s bulletin put it at 6.29%.)
• Core inflation, excluding food and regulated prices, eased from 6.1% in August to 6.0%.
• Analysts’ expectations for December 2026 rose slightly to 6.9%, while the two-year expectation stayed near 4.0%. The target is 3%.
• Growth likely slowed in the third quarter versus the second, with weaker consumption indicators.

The board also named El Niño as an upside risk to food and regulated prices.

On public finances, it called for a “rigorous review” of the Economic Recovery Bill (the Ley de Rescate Económico) sent to Congress, saying fiscal conditions matter for bringing inflation to target. Portafolio reports the bill was filed the day before the decision, and that the board gave no estimate of its effect on inflation or rates.

Future decisions, it said, depend on new information.

What it means for expats in Medellín

• The peso: The hike many expected could have supported the peso. We could not confirm a verified October 30 official exchange rate (TRM) while writing this. The last figure we cite is the TRM of COP 3,157.94 on October 27. Check the current rate before large transfers, since it moves daily.
• Loans: A hold means no new upward push from the policy rate, but rates remain high. Portafolio notes that high rates make credit costlier for households and businesses. If your peso loan floats, ask your bank how it is indexed.
• Savings and CDTs: Peso term deposits (CDTs) often move with the policy rate, so a pause may mean yields stop rising for now. We did not find published post-decision CDT rates, so compare current offers directly. With inflation near 6.3%, real returns are thin. This is general context, not financial advice.
• Rent and prices: Medellín had the highest city inflation in September, at 7.04%, which we first flagged in July’s 6.95% reading.

What to watch next

Three signals: the board’s minutes (published later on Banrep’s site), how Congress handles the rescue bill, and the next inflation reading from DANE. A 4–3 split means a hike stays on the table if inflation expectations keep climbing.

FAQ

What is Colombia’s interest rate now? 12.25%, unchanged after the October 30, 2026 meeting (Banrep).

Why didn’t Banrep raise rates? A 4–3 majority chose to hold. The communiqué does not give individual reasons; it cites slower growth, a small inflation surprise to the downside and fiscal risks.

Is the Ley de Rescate Económico law yet? No. Per Portafolio it was filed in Congress on October 29 and still needs review.

How does the Banrep rate affect the peso and the TRM? A higher policy rate can make peso assets more attractive and support the currency, but the exchange rate also depends on oil prices, global dollar strength and fiscal news, so the link is not one-to-one.