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Central Bank Decision Expected Unchanged at 13.25%

COLOMBIA
  • Colombia central bank decision due in just under 10 minutes - consensus expectations looks for unchanged at 13.25%.
  • As a guide, the decision announcement is usually delayed slightly beyond the turn of the hour.
  • Markets unanimously expect an unchanged decision today, confident that the 25bp rate hike in April, in the aftermath of the most recent cabinet reshuffle, marked the conclusion of the tightening cycle.
  • Furthermore, the continued outperformance of the Colombian peso is likely to bolster an already improving inflation outlook, which in turn should make BanRep more comfortable keeping policy steady at this juncture and keeps the probability of a unanimous decision high.
  • The focus going forward now turns to when the central bank may envisage commencing rate cuts, a topic that has garnered increased attention following the latest comments from the newly-appointed finance minister.
  • Full MNI Preview including summary of sell-side views here: https://roar-assets-auto.rbl.ms/files/54393/MNI%20...

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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