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Itaú Expect An Unchanged Decision As Inflation Dynamics Turn Corner

COLOMBIA
  • Since the April meeting, annual inflation fell in May to 12.36% (from 12.82% in April), while core inflation (excluding food and energy) fell from a peak of 10.60% to 10.54%.
  • The central bank’s survey showed the one-year inflation expectations dropped 47bps to 6.42% and two-year inflation expectations fell 15bps to 3.97%.
  • With inflation and inflation expectations having turned the corner, and activity weakening, Itaú believe the Board will stay on hold at 13.25% this meeting.

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