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The Banco de la República rate: what it is and how it affects your investments
The monetary policy rate (also called the intervention rate) is the minimum rate at which Banco de la República, Colombia’s central bank, lends money overnight to banks. Today it stands at 12.25%. It is the most important rate in the Colombian economy: what CDTs pay, what loans cost and the price of TES largely depend on it.
Why the central bank moves it
Banco de la República aims to keep inflation low and stable, with a target of 3%. Its Board of Directors reviews the rate throughout the year:
- If inflation is high or threatens to rise, it raises the rate: credit gets more expensive, spending slows and prices moderate.
- If inflation is under control and the economy weakens, it cuts the rate to stimulate credit and activity.
The latest annual inflation figure is 6.29%, as of September 2026.
How it reaches your pocket
| If the central bank rate rises… | Effect |
|---|---|
| CDTs and savings accounts | New CDTs usually pay more |
| Consumer loans and credit cards | They get more expensive |
| TES and bonds you already hold | Their price tends to fall (and rises when the rate falls) |
| Fixed income funds | They may have low or negative returns while prices adjust |
| IBR and loans tied to the IBR | They move almost in step |
The last few years, in figures
During the pandemic the rate fell to 1.75% (2020). With the inflation of 2022, the central bank raised it at every meeting to 12% in December 2022, and it reached 13.25% in 2023. From December 2023 it cut it to 9.25%, and in 2026 it raised it again. See the full chart since 2015 in rates today.
How to use this information when investing
- If you expect cuts, locking in a high rate for longer (a long CDT or a TES) may pay off.
- If you expect hikes, short terms let you reinvest soon at higher rates.
- What matters is not only the decision but whether it surprises: the market moves ahead of what it expects.
Module 4 and Module 11 of the course
Inflation, rates and the central bank for investors; and the yield curve with ten years of official data for those who want to read the market like a professional. Launch price with the coupon LANZAMIENTO20, already applied in the button, until November 8.