Brazil, at 13.75%, and Colombia, at 12.25%, have the highest monetary policy rates in Latin America in October 2026, and Costa Rica, at 3%, the lowest, according to data from the [Bank for International Settlements](https://data.bis.org/topics/CBPOL) (BIS) and each central bank's statements. Chile ranks seventh at 4.5%, days before its central bank meets on October 27.
The policy rate is the benchmark interest rate each central bank sets to control inflation, and it influences the cost of credit. This ranking covers 10 countries with a benchmark rate in force and will be updated monthly on this same page.
The ranking of interest rates in Latin America
| Rank | Country | Policy rate | In force since | Source |
|---|---|---|---|---|
| 1 | Brazil | 13.75% | September 17, 2026 | BIS (Central Bank of Brazil) |
| 2 | Colombia | 12.25% | October 1, 2026 | Banco de la República |
| 3 | Mexico | 6.5% | May 8, 2026 | BIS (Banxico) |
| 4 | Uruguay | 6% | October 8, 2026 | Central Bank of Uruguay |
| 5 | Paraguay | 5.5% | February 2026 | BCP, via local media |
| 5 | Dominican Republic | 5.5% | September 2026 | BCRD, via elDinero |
| 7 | Chile | 4.5% | December 17, 2025 | BIS (Central Bank of Chile) |
| 8 | Peru | 4.25% | September 12, 2025 | BIS (BCRP) |
| 9 | Guatemala | 3.5% | February 18, 2026 | Bank of Guatemala |
| 10 | Costa Rica | 3% | July 2026 | BCCR, via local media |
| Ref. | United States | 3.875% (midpoint) | September 17, 2026 | BIS (Federal Reserve) |
Sources: BIS policy rate series (data to October 20), Banco de la República, Central Bank of Uruguay, Bank of Guatemala, BCP, elDinero and BCCR. Paraguay held its rate on October 23 and Costa Rica on September 24, according to local press. "In force since" shows when the rate reached its current level.
Real interest rates in Latin America
A 13.75% rate does not mean the same with 4% inflation as with 10%. The approximate real rate, which subtracts annual inflation, shows how restrictive each central bank's policy is:
| Country | Policy rate | Annual inflation (September 2026) | Approximate real rate |
|---|---|---|---|
| Brazil | 13.75% | 4.58% | 9.2 points |
| Colombia | 12.25% | 6.29% | 6.0 points |
| Paraguay | 5.5% | 1.7% | 3.8 points |
| Mexico | 6.5% | 3.45% | 3.1 points |
| Costa Rica | 3% | 0.34% | 2.7 points |
| Uruguay | 6% | 4.68% | 1.3 points |
| Chile | 4.5% | 4.1% | 0.4 points |
| Dominican Republic | 5.5% | 5.12% | 0.4 points |
| Peru | 4.25% | 4.55% | −0.3 points |
| Guatemala | 3.5% | 4.69% | −1.2 points |
Our calculation: policy rate minus annual inflation for September 2026, taken from our Latin America inflation ranking, which uses official data compiled by Bloomberg Línea. It is a simple measure that ignores inflation expectations. For Peru, the figure is for Metropolitan Lima.
Who is hiking and who is cutting: interest rates in Latin America in 2026
| Country | End of 2025 | October 2026 | Change in 2026 |
|---|---|---|---|
| Colombia | 9.25% | 12.25% | +3 points |
| Dominican Republic | 5.25% | 5.5% | +0.25 |
| Chile | 4.5% | 4.5% | No change |
| Peru | 4.25% | 4.25% | No change |
| Paraguay | 5.75% | 5.5% | −0.25 |
| Guatemala | 3.75% | 3.5% | −0.25 |
| Costa Rica | 3.25% | 3% | −0.25 |
| Mexico | 7% | 6.5% | −0.5 |
| Brazil | 15% | 13.75% | −1.25 |
| Uruguay | 7.5% | 6% | −1.5 |
Sources: BIS for Brazil, Colombia, Mexico, Chile and Peru; each central bank's statements for the rest. Uruguay cut 1.75 points between January and March and then raised 0.25 in October. Colombia is the opposite case: it raised its rate four times in 2026. Outside the region, the U.S. Federal Reserve and the European Central Bank also raised rates in September, according to the BIS.
Argentina, without a benchmark rate
Argentina is not in the ranking because its central bank does not currently set a comparable policy rate: the BIS series for the country stops in July 2025, when the rate was 29%. Since then, the BCRA has run policy with other instruments. To follow Argentina's economy, see country risk and the dollar in Argentina.
Upcoming decisions
| Country | Next known meeting |
|---|---|
| Chile | October 26-27, 2026 (announcement on the 27th) |
| Colombia | October 30, 2026 |
| Costa Rica | November 26, 2026 |
Sources: Banco de la República and the BCCR calendar as reported by Costa Rican media. In Chile, traders expect the rate to stay at 4.5% (see what traders expect). For the rest of the regional picture, see how currencies moved against the dollar and growth by country.
How to cite this data
Vivarae News (2026). "Interest rates in Latin America: central bank ranking for October 2026". Updated October 24, 2026. Available at https://vivaraenews.com/en/interest-rates-in-latin-america-ranking-by-country-october-2026/. The data may be reproduced by citing Vivarae News and linking to this page; each country's figures belong to their original source.
Frequently asked questions
Which Latin American country has the highest interest rate?
Brazil, with a Selic rate of 13.75% in October 2026, followed by Colombia at 12.25%.
Which has the lowest?
Costa Rica, at 3%, followed by Guatemala at 3.5%, among the 10 countries in the ranking.
What is Chile's interest rate?
4.5%, in force since December 17, 2025. The Central Bank of Chile decides again on October 27, 2026.
What is the real interest rate?
The policy rate minus inflation. It shows whether monetary policy is slowing the economy: the higher it is, the more restrictive.
Why is Argentina not in the ranking?
Because its central bank has not set a comparable policy rate since July 2025, according to the BIS series.
