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BanRep: Policy Rate Close To Level Required For Inflation Convergence

COLOMBIA
  • On Friday, BanRep raised the overnight lending rate by 75bps to 12.75%. This was below the median surveyed estimate for a 100bp hike. The vote was split with two members voting for a more moderate 25bp increase compared to the five-member majority.
  • The Colombian peso has opened on a softer note, falling roughly one percent against the greenback.
  • In the statement, the board noted that with the decision “monetary policy is close to the position required to induce a convergence of inflation towards its 3% target in the medium term. Further decisions by the Board will depend on new information available.”
  • The Monetary Policy Report will be released today at 5pm local time, and the press conference will take place on Wednesday. Additionally, the minutes will be released on Tuesday.
  • Statement link here: https://www.banrep.gov.co/es/noticias/junta-directiva-banco-republica-decidio-mayoria-incrementar-75-puntos-basicos-pb-tasa-interes

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