Colombia raises interest rate amid rising inflation in 2026

Colombia has increased its interest rate to 12% following a court decision that stripped the government of its power to block monetary tightening. This action addresses rising inflation in 2026, while a presidential election eased concerns over central bank independence. This rate hike may signal a global shift toward tighter monetary policies, potentially influencing future U.S. Federal Reserve actions. The move reflects a strategic response to economic pressures and a restored capacity for monetary adjustment.