The board of directors of the Banco de la República in its meeting today decided to lower the intervention interest rate by 25 bps, in a unanimous decision, to place it at 4.25%, in line with the expectations of the market average. The inflation data showed a slower pace of increase in consumer prices than expected, thus opening up space for a new reduction in the intervention rate. The moderation in the variation of prices was mainly explained by a reversal of the transitory shocks observed last year and the appreciation of the peso. In this way, inflation expectations continue to decrease to stand at 3.37% for 2018 and 3.16% for 2019. However, the manager of the Banco de la República, Juan José Echavarría, stated that there are risks of inflation on the rise because food prices remain high.
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