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December CPI Data, Peso Weakness Reflecting Oil Adjustment

COLOMBIA
  • Markets are reopening on Tuesday in Colombia following the Epiphany Day holiday to start the week. USDCOP has risen 1.25% to 3927, with the peso weakness largely reflecting the week’s declines for oil prices, that were in focus yesterday. Despite a recovery today, WTI crude futures headed for their lowest close since Jan. 2 on Monday as demand pessimism swept the market.
  • Local attention is on inflation data due after the close where the median of surveyed estimates points to annual CPI slowing to 9.45% compared to 10.15% the previous month. Despite stubbornly high inflation, weak growth data prompted BanRep to start easing in December and a further decline in inflation will bolster the calls for further rate cuts. Data is due at 2300 GMT/1800ET.
  • This week the market will also eye on Wednesday Ecopetrol’s extraordinary meeting where it is proposing changes to the minimum requirements to be a board member. Ecopetrol S.A. announced today the commencement of a cash tender offer, to purchase any and all of its outstanding 4.125% Notes due 2025.
  • As a reminder over the weekend, Finance Minister Ricardo Bonilla spoke in an interview with Semana magazine, where he said there is no bill relating to the fiscal rule, or balanced budget act, but there is a debate which the government intends to continue.

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