Colombia Leads in Interest Rates Among Pacific Alliance Nations Amidst Regional Economic Shifts

Colombia now holds the highest reference interest rate among the Pacific Alliance countries, excluding Argentina due to its hyperinflation crisis. The Bank of the Republic recently cut the rate by 25 basis points to 13%, aiming to accelerate Colombia’s economic recovery amid slowdown concerns. This move positions Colombia in a unique spot as neighboring Latin American countries begin to reduce their interest rates.Chile’s central bank leads the rate reduction trend, currently at 8.25%. Peru has the lowest rate in the alliance at 6.75%, and the second-lowest among major regional economies. Mexico’s central bank, however, maintains its rate at 11.25% without initiating cuts.Brazil, the region’s largest economy, has an interest rate of 11.75%, with further reductions anticipated as macroeconomic conditions evolve and inflation slows. On the other hand, Argentina’s central bank enforces a stringent monetary policy with a 110% rate to mitigate its hyperinflation crisis, while Bolivia maintains a low intervention rate of 3.10% to control inflation.