Free Trial

Itaú Still Expect BanRep Easing To Commence In Q1 Next Year

COLOMBIA
  • According to Itaú, falling imports amid still growing exports helped continued the GDP contraction in the quarter. Sequentially, the economy grew 0.2% (SA) from 2Q23 to 3Q23, only partially offsetting the prior 1.0% fall.
  • The evident activity slowdown will raise calls to start the rate cut cycle, yet sticky inflation at elevated levels along with inflation expectations well above the target mean the bar is high to initiate the easing cycle at next month's meeting.
  • Itaú continue to expect cuts in 1Q24. From Itaú’s latest macro scenario report, they expect the policy rate at 8.0% for year-end 2024 (up 50 bps from their previous scenario, still well above the nominal neutral rate of around 5%).

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.