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Colombia Policy Interest Rate 13% (consensus 13%) in Dec-23

• The Banco de la República Colombia's interest rate cut by 25 bps to 13.00% aligned with the economic consensus, reflecting the Board's response to the sustained decline in inflation and a commitment to support economic activity amidst a backdrop of mixed inflation expectations.
• External improvements, including a stronger currency and reduced sovereign risk, coupled with the Board's caution against wage-induced inflationary pressures, demonstrate a strategic approach to balance growth with inflation targeting.
• Future monetary policy adjustments will remain contingent on incoming data, with the overarching objective of bringing inflation closer to the 3% target while monitoring global financial developments and domestic economic indicators.

Colombia Unemployment Rate 9.23% (consensus 9.0%) in Oct-23

- The unemployment rate in Colombia for October 2023 reduced slightly to 9.23%, disappointing the consensus for a fall to 9.0%.

Colombia GDP Growth -0.3% y-o-y (consensus 0.5%) in Q3-23

- Colombia's GDP growth in Q3-23 was -0.3% year-on-year, indicating a surprising decline from the previous quarter.
- The growth rate stood below both the one-year and long-run averages, suggesting a slowdown in the economy compared to historical trends.

Colombia CPI Inflation 0.25% m-o-m (consensus 0.35) in Oct-23

- Colombia's CPI inflation edged up by 0.25% on a month-on-month basis in October 2023, 0.1pp under the consensus estimate.
- This growth represents the slowest rate of inflation since October 2021 and lags behind the one-year average inflation rate by 0.58 percentage points.