CANADA MAY RETAILS -0.8% VS FORECAST -0.6%, PRIOR +0.6%

MNI: Canada June Retails Fall And May Biggest Drop In A Year

MNI China Daily Summary: Friday, July 19

MNI BRIEF: China To Boost Consumer Spending, New Industries

MNI BRIEF: China Enhances Fiscal Response To Boost Economy

MNI BRIEF: China To Promote Migrates' Rights, Reform Hukou System

MNI: BAKER HUGHES US RIG COUNT 586; OIL RIGS 477; GAS RIGS 103

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BBVA Expect 50bp BanRep Cut, See COP Remaining Strong For Now

COLOMBIA
BulletEM BulletEmerging Market NewsHomepage
  • BBVA expect BanRep to cut by 50bp to 11.75% at its policy meeting today (decision due at 1900BST/1400ET). A cut of 50bp would be in line with the move in March, bringing total easing for the cycle to 150bp. BBVA expect a few board members to vote for larger cuts. Forward guidance is still likely to suggest further easing, with the size and timing dependent on incoming CPI data.
  • BBVA expect BanRep to accelerate to 75bp by June as core CPI inflation should continue to converge below the 4.00% upper tolerance band, together with improving – although still slow – growth and sluggish credit conditions. They still prefer Colombia local rates in the belly and front-end of the curve and see the COP remaining strong for now despite some carry erosion, given the pause and potential turn in the strength of the USD.
142 words

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.
  • BBVA expect BanRep to cut by 50bp to 11.75% at its policy meeting today (decision due at 1900BST/1400ET). A cut of 50bp would be in line with the move in March, bringing total easing for the cycle to 150bp. BBVA expect a few board members to vote for larger cuts. Forward guidance is still likely to suggest further easing, with the size and timing dependent on incoming CPI data.
  • BBVA expect BanRep to accelerate to 75bp by June as core CPI inflation should continue to converge below the 4.00% upper tolerance band, together with improving – although still slow – growth and sluggish credit conditions. They still prefer Colombia local rates in the belly and front-end of the curve and see the COP remaining strong for now despite some carry erosion, given the pause and potential turn in the strength of the USD.