July 03, 2024 11:41 GMT
Additional Cabinet Adjustment, BanRep Minutes Due Tomorrow
COLOMBIA
- The Colombian peso outperformed yesterday as the market reopened from the holiday on Monday, following Friday’s 50bp BanRep interest rate cut. USDCOP fell by 0.59% to 4128, aided by the decline in US yields and rally in oil prices over recent sessions. BBVA notes that USDCOP seems to be settling into a new range, between 4060 and 4200 since mid-June. They believe that a break in the cross above 4200 would likely need to wait until BanRep accelerates the pace of rate cuts, something they believe could happen in September.
- Meanwhile, President Petro made an additional adjustment to his cabinet, naming Maria Constanza García as transport minister yesterday, replacing William Camargo in the position. On the macro front, no data are due today, with attention on May exports and the BanRep minutes due tomorrow, followed by June CPI next week.
- Goldman Sachs expects the minutes to echo the central bank’s prudent approach to cutting, with focus on discussions around stronger-than-expected activity, potential bumps in the disinflation process ahead and still high core services inflation. Given the split in the Board, attention will also be on discussions around the conditions needed to support an acceleration in the easing pace in the near-term.
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