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Latin American central banks hold rates

Updated 3 times since CLSTR started tracking revisions of this situation.

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2026-08-01 02:57 UTC → 2026-08-01 23:16 UTC · added removed

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 accelerating to of 6.1% and driven by food (6.8%) and regulated‑goods prices rising sharply. The board rejected a 50‑basis‑point hike, noting that unemployment had fallen to 8 % (5.9%) price pressures. Unemployment stayed at 8% and other activity indicators were improving, modestly improved, but inflation expectations remained above the 3 % target. Finance Minister Germán Ávila warned that future cuts may be needed rose to avoid recessionary effects 6.6% for December 2026 and urged 5% for 2027, keeping the bank on a 50‑basis‑point reduction. The 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 announced reiterated the need to anchor expectations. The board also launched a US$4 billion foreign‑reserve acquisition programme, to be executed through programme via option‑sale auctions beginning in early August, aiming August to bolster external confidence. Analysts now project inflation at 6.6% for December 2026 and 5.0% for 2027, while with the peso’s recent appreciation is expected to temper price pressures. The economy shows signs of region’s economies show modest recovery, with projected 2026 growth around 2.5%. 2.5% for Colombia and similar outlooks elsewhere.

Versions

  1. 2026-08-01 23:16 UTC Latin American central banks hold rates
  2. 2026-08-01 02:57 UTC Latin American central banks hold rates
  3. 2026-07-31 21:51 UTC Latin American central banks hold rates
  4. 2026-07-31 19:22 UTC Latin American central banks hold rates

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