Colombian Central Bank Will Keep Rates At Historic Lows Through End-2020

• On August 31, Colombia’s Banco de la República (BanRep) lowered its policy interest rate by 25 basis points (bps) to 2.00%, a new record low.
• The bank’s unanimous decision to cut the rate in August brings its cumulative rate-cutting cycle to 225 bps (coming from 4.25% in January, as BanRep has shifted to a more expansionary stance to mitigate the economic shock of Covid-19.
• Fitch expects BanRep to pause its easing cycle, keeping its policy rate at 2.00% through end-2020, as it evaluates Colombia's economic recovery in the coming months.
• As of September 1, the government lifted a vast majority of public health restrictions as Covid-19 cases have appeared to plateau, which will ease the biggest headwinds to growth

(Source: Fitch Solutions)