The Central Bank of Colombia left its benchmark policy rate unchanged at 9.25% in June 2025, with four directors voting to maintain, two for a 50 bps cut and one for 25 bps. Annual inflation showed a sharper decline, easing to 4.8% in June from 5.1% in May, thanks to lower food and regulated-price inflation, particularly electricity, while core inflation excluding food and regulated prices stabilized at 4.8%. The economic activity index rose 2.7% year-on-year in May, led by tertiary sectors, and the technical team estimates that GDP grew at a 2.7% annualized rate in Q2, driven by a 4.1% expansion in domestic demand. External financing conditions remain challenging amid global trade tensions, elevated geopolitical uncertainty and a gradual US policy-rate normalization. The Board emphasized that future policy moves will respond to the evolution of inflation and its expectations, economic activity dynamics, and the internal and external risk balance.