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BanRep Interest Rate Decision, June Unemployment Rate

COLOMBIA
  • BanRep is widely expected to deliver another 50bp cut in the overnight rate to 10.75%, as core CPI inflation continues to moderate slowly amidst a still highly restrictive monetary policy position (1900BST/1400ET). The committee is expected to maintain a cautious tone given a challenging fiscal backdrop and concerns about the convergence of inflation to target next year.
  • However, persistent calls for a faster pace of easing from Finance Minister Bonilla suggest that the vote will be split once again. The central bank will also publish its Q3 Monetary Policy Report on Friday.
    • The full MNI preview with analyst views is here.
  • Before the BanRep meeting, June unemployment figures will be published at 1600BST(1100ET), with analysts expecting the urban unemployment rate to tick up to 10.4%, from 10.3% prior.

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