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Bank Of America Now Forecast BanRep Terminal Rate of 8.00%

COLOMBIA
  • Bank of America have adjusted their forecast for BanRep’s terminal rate to 8% from 7.5% due to “challenging inflation conditions”.
    • In a note, their economist sees the chance of an off calendar 100 basis point increase in February.
  • The bloomberg report includes:
  • BofA now see inflation will end 2022 at 5.8%, up from 4.8% previously, and 2023-end inflation at 4.4% revised from 3.7%
    • “ We believe core will continue increasing in coming quarters, pressured by indexation”.

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