BanRep voted to hold the policy rate at 9.25% in a split decision. The five key reasons highlighted in the statement and press conference for remaining cautious are as follows: i) fiscal challenges driving higher borrowing costs; ii) CPI expectations remain above target; iii) domestic demand is growing at a healthy pace and will likely boost GDP in 2H25; iv) the expected slower normalisation of monetary policy in the United States; and v) global trade tensions and global conflicts in various regions of the world.
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