© Reuters. FILE PHOTO: Colombian Finance Minister Ricardo Bonilla, speaks during a press conference in Bogota, Colombia May 5, 2023. REUTERS/Luisa Gonzalez/File photoMARRAKECH - Colombian Finance Minister Ricardo Bonilla said on Saturday his ministry was working with the central bank towards cutting its benchmark interest rate from 13.25% to 13% at October's policy meeting, with another reduction seen before year-end.
The central bank held the key rate steady at 13.25% in September for the third time in a row, citing stubborn inflation. Bonilla said inflation was set to reach 9.2% at the end of 2023.Two members voted for a borrowing cost decrease at the board's September meeting, though the bank does not reveal how each member voted. Five members voted in September to keep borrowing costs at 13.25%.
Colombia's consumer prices rose by 0.54% in September, taking cumulative 12-month price growth to 10.99%. That was down from highs in 2022, but still more than double the central bank's long-term target of 3%.