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BanRep Might Need to Tighten Further Amid COP Weakness

COLOMBIA
  • Colombia central bank Governor Leonardo Villar spoke yesterday at an IMF event. Villar explained that adjusting monetary policy is a long process and that Colombia’s food price inflation exceeds that of peer nations
  • He added that the weakening peso may mean a need for higher interest rates, however the central bank is still not considering intervening in the FX market. He also reiterated the central bank is not considering capital controls.
  • Lastly, Villar noted the wide current account deficit reflects excess demand and given strong growth, the current account deficit should narrow. (BBG)
  • Today, Finance Minister Jose Antonio Ocampo and Chile Finance Undersecretary Claudia Sanhueza speak on a tax reform panel.

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