# Latin American central banks hold rates

> Live situation record from CLSTR: https://clstr.news/situations/latin-american-central-banks-hold-rates
> Updated: 2026-07-31T16:50:14.000Z. Sources: 30. Developments: 2.

In late July 2026, the Central Bank of Chile kept its benchmark rate at 4.5% while warning of slowing activity, rising unemployment and limited fiscal space amid inflation above target and oil‑price volatility linked to the US‑Iran conflict. Days later the Dominican Republic’s central bank also left its policy rate unchanged at 5.25%, citing the same energy‑price shock and a regional trend of rate stability.

On 31 July, Colombia’s Banco de la República voted 4‑3 to maintain its policy rate at 12% despite June inflation of 6.1% driven by food (6.8%) and regulated‑goods (5.9%) price pressures. Unemployment stayed at 8% and activity modestly improved, but inflation expectations rose to 6.6% for December 2026 and 5% for 2027, keeping the bank on a restrictive stance. President Gustavo Petro publicly called for a cut of at least two percentage points, accusing the bank of fueling the peso’s revaluation, but the central bank reiterated the need to anchor expectations.

The board also launched a US$4 billion foreign‑reserve acquisition programme via option‑sale auctions in early August to bolster external confidence. Analysts project inflation at 6.6% for December 2026 and 5.0% for 2027, with the peso’s appreciation expected to temper price pressures. The region’s economies show modest recovery, with projected 2026 growth around 2.5% for Colombia and similar outlooks elsewhere.

## Claims

- President Gustavo Petro’s administration pressured the board to keep the rate unchanged. (disputed)
- President Gustavo Petro demanded a reduction of at least two percentage points in the policy rate. (disputed)
- The vote on the rate decision was 4 in favor of maintaining and 3 for a 50‑basis‑point increase. (corroborated by 8 sources)
- Banco de la República kept the policy interest rate at 12% on July 31, 2026. (corroborated by 6 sources)
- June inflation in Colombia was 6.1% year‑on‑year. (corroborated by 5 sources)
- Food price inflation was 6.8% and regulated‑goods inflation 5.9% in June. (corroborated by 5 sources)
- Unemployment in Colombia fell to 8.0% in June. (corroborated by 5 sources)
- Banco de la República announced a program to purchase up to US$4 billion of foreign reserves via auctions starting August 2026. (corroborated by 5 sources)
- Inflation expectations rose to 6.6% for December 2026 and 5% for 2027. (corroborated by 4 sources)
- Finance Minister Germán Ávila said further rate cuts are needed to avoid significant recessionary consequences. (corroborated by 2 sources)

## Timeline

### 2026-07-31: Colombia's central bank holds policy rate at 12% amid persistent inflation

Colombia's central bank kept its policy rate at 12% after a 4‑3 vote, citing 6.1% inflation, rising expectations and 8% unemployment, while President Petro called for a two‑point cut.

22 sources. https://clstr.news/cluster/dominican-republic-and-chile-central-banks-keep-rates-steady

### 2026-07-28: Chile Central Bank Holds Rate at 4.5% Amid Middle East Tensions

Chile's central bank kept the policy rate at 4.5% as inflation stayed above target and economic activity weakened, while warning of heightened external risks from the US‑Iran conflict and oil price volatility.

8 sources. https://clstr.news/cluster/chile-central-bank-holds-policy-rate-at-45

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Cite as: Latin American central banks hold rates. CLSTR, https://clstr.news/situations/latin-american-central-banks-hold-rates