TRUDEAU SAYS IT LOOKS LIKE BOC WILL BE LOWERING RATE AGAIN

MNI BRIEF: Canada Commits To Just One Of Three Fiscal Anchors

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

COLOMBIA: Oil Bounce Buoys Peso, Despite Fitch Fiscal Concerns

COLOMBIA
BulletEM BulletEmerging Market News
  • The Colombian peso has outperformed today, gaining by 0.8% against the dollar, as it has benefitted from the 4% rebound in oil prices. The move in USDCOP back below 4200 has come despite some cautious comments from Fitch regarding the fiscal outlook, noting that the government has lost some of its fiscal credibility as the fiscal deficit is seen coming in at 5.6% of GDP this year.
  • Speaking at an event in Bogota today, Fitch analysts said that they could take negative credit action if high deficits persist, debt to GDP continues to grow or if there’s a significant divergence from peers. In addition, economic growth below 3% and closer to 2% could also be credit negative. Fitch sees the economy growing 2% this year and 2.8% next, rising to 3% in 2026.
  • Economic activity data for August due next week will be closely watched, particularly given the potential for BanRep to accelerate its easing cycle later this month.
157 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.
  • The Colombian peso has outperformed today, gaining by 0.8% against the dollar, as it has benefitted from the 4% rebound in oil prices. The move in USDCOP back below 4200 has come despite some cautious comments from Fitch regarding the fiscal outlook, noting that the government has lost some of its fiscal credibility as the fiscal deficit is seen coming in at 5.6% of GDP this year.
  • Speaking at an event in Bogota today, Fitch analysts said that they could take negative credit action if high deficits persist, debt to GDP continues to grow or if there’s a significant divergence from peers. In addition, economic growth below 3% and closer to 2% could also be credit negative. Fitch sees the economy growing 2% this year and 2.8% next, rising to 3% in 2026.
  • Economic activity data for August due next week will be closely watched, particularly given the potential for BanRep to accelerate its easing cycle later this month.