Overview
- The Banco de la República lifted its policy rate by 100 basis points to 11.25% after a 4–3 board vote, citing stubborn inflation and external risks.
- Finance Minister Germán Ávila walked out of the board meeting in protest and the government said it would withdraw from the bank’s board.
- President Gustavo Petro accused the bank of trying to “kill the economy” and of enriching holders of public debt, escalating a rare public rupture.
- Central bank manager Leonardo Villar defended the move as a constitutional duty to protect the currency’s purchasing power with inflation near 5% against a 3% target.
- Legal experts warn the minister’s absence could stall future policy votes and analysts flag higher market volatility as elections approach.