Free Trial

BanRep Minutes Suggest Hikes To Continue "In Coming Months"

COLOMBIA
  • The minutes stated that the decision to hike by 100bps “is part of a gradual but firm process that must continue in the coming months in order to ensure a progressive return of inflation to the target of 3% per year.”
    • The five member majority voting for the implemented action echoed Governor Villar’s post-meeting communique surrounding it being a “significant interest rate adjustment”, especially “taking into account the uncertainty surrounding the international context”.
    • Dissenting directors noted the robust performance of economic activity and improving employment indicators. They also “expressed their concern that the inflationary outlook could become even more difficult due to price pressures that could come from the significant increases registered in the producer price index, and due to the probable unsustainability of the gasoline price subsidy that has been providing relief to the consumer.”
  • Link to the release here: https://www.banrep.gov.co/es/minutas-reunion-junta-directiva-del-banco-republica-del-31-marzo-2022
  • Separately, Colombia set a 0% tariff for 12 months on an additional 39 agricultural products in order to reduce inflationary pressures, according to a govt statement.
    • President Duque issued the decree because the products are essential to agricultural activities and impact the cost of food production. (BBG)

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.