Free Trial

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Congress Approves Budget, Eco. Activity Raises Future Growth Concerns

  • Yesterday's release of the economic activity index which rose 13.2% y/y in August, disappointed the 14.4% print in July and consensus expectations for an advance of 15.5%.
  • The index fell 1.9% month on month after gains of 3.2% in July and 7.5% in June. Construction and manufacturing fell 2.7%. Services and commerce declined 1.5%. Mining and agriculture were broadly unchanged.
  • While the report should not signal immediate concerns, analysts have pointed to the reading potentially supporting the more gradual approach to monetary tightening with the weaker results raising questions on future growth and concerns about the lack of catalysts following the social unrest and easing of pandemic related restrictions.
  • As a reminder, the central bank board were last split 4-3, in favour of a 25bp hike versus a more aggressive 50bps at their September meeting. The next BanRep meeting will be on October 29.
  • Overnight Colombian congress approved next year's COP350.4T ($93 billion) budget which is 5.3% higher than last year's, according to a statement from the Finance Ministry.
  • The law includes the suspension of part of the guarantee law that will allow public entities to execute contracts four months before the elections, which the government has said will help in the economy's recovery. (BBG)

To read the full story

Why Subscribe to


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.