Colombia’s Surprise Rate Hold Aimed to Avoid Election Noise

Colombia’s central bank said its surprise decision to hold interest rates steady in late April was meant to avoid perceptions that it was interfering in upcoming presidential elections.

Policymakers led by Governor Leonardo Villar sought to demonstrate consensus among the bank’s board despite deep divisions over the monetary policy outlook and intense pressure from President Gustavo Petro’s administration, according to the minutes of their April 30 decision.