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BanRep Expected To Hike 100Bps, Liberal Party Will Not Back Petro

COLOMBIA
  • Continued price pressures has seen annual headline CPI rate exceed 8.5% alongside the rise in inflation expectations in Colombia.
    • As of writing, 19/20 analysts that have submitted estimates to Bloomberg are expecting BanRep to continue with another 100bp rate hike to 6.00% on Friday. Just one analyst is forecasting a bolder 150bp hike.
    • The full MNI preview with analyst views will be published later today.
  • Colombian Presidential candidate Gustavo Petro said the powerful Liberal Party has decided not to back him in presidential elections next month.
    • In a quest for allies, both Petro and his main rival, Federico “Fico” Gutierrez, met with Liberal Party chief and former President Cesar Gaviria to seek his backing in what polls show will be a tight second round in June. The Liberal party has yet to make an official announcement.
    • The Liberal Party is one of the most powerful in Colombia after preliminary results of the March congressional elections show it has 15 of the 102 seats in the Senate and 32 in the Lower House. (BBG)

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