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BanRep Governor Villar Sees Inflation Expectations Harder To Control

COLOMBIA
  • Food disinflation in Colombia may take longer than expected making it harder for policy makers to control inflation expectations, Central Bank Governor Leonardo Villar said in a webcast event organized by the Center for Global Development.
    • Colombia has seen short-term positive impacts from Russia’s invasion of Ukraine related to higher coal and oil prices that help to improve the country’s terms of trade.
    • Sees 2022 current account deficit narrowing to 3.5%-4% of GDP from current estimate of 5% of GDP.
    • There are concerns about potential capital outflows on Fed rate rises and high twin deficits. However, economic recovery has been much faster than expected.

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