Central Bank of Colombia raises its policy rate to 12.25%

The Central Bank of Colombia raised its policy interest rate by a quarter of a point, from 12% to 12.25%, with effect from Thursday 1 October 2026, according to the central-bank data we track.

A year earlier the rate was 9.25%, so it is now 3.00 points higher over twelve months. Among the 43 central banks on our rates page, that puts it 6th from the top.

Central banks use the policy rate to steer inflation and growth: raising it makes borrowing dearer and tends to cool demand, cutting it makes borrowing cheaper and tends to support it.

Interest rates are one of the main drivers of currencies: a higher rate usually makes holding a currency more attractive, a lower one less. The effect is often priced in before the decision. Educational context, not a forecast.