Colombia’s central bank has come a long way from the institution that couldn’t reduce the 22% inflation rate that was afflicting the country until less than 10 years ago.
The bank adopted an inflation-targeting framework in 2000, which not only led, among other factors, to lower inflation rates; it also enhanced the independence of the central bank by explicitly highlighting that the bank’s main priority is bringing down inflation. Monetary policy has also become more transparent with the publication of inflation targets, as well as regular quarterly reports.
