Colombia's central bank has decided to lower its key interest rate to 9.75% due to concerns about fiscal risks and the weakening of the peso.

This cautious approach to monetary policy reflects the delicate balance policymakers are trying to strike between addressing economic pressures and maintaining stability in the financial markets.

Some board members advocated for a larger reduction to 9.5%, but the majority voted for the more conservative option. The decision highlights the central bank's concerns about the potential risks associated with the country's fiscal situation and the impact of the weakening peso on the economy.