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JP Morgan Expect BanRep To Maintain 50bp Easing Pace Today

COLOMBIA
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  • JP Morgan expect BanRep to ease by 50bp later today, driving the policy rate to 10.25%. Their call is predicated on the idea that the majority of the Board will continue to operate cautiously, wary of the temporary effect of the transportation distortions in early September and their impact on near-term inflation.
  • The majority may prefer to wait for the September CPI report before accelerating the easing pace. JPM maintain as their base case the Board cutting the policy rate by 75bp in both October and December, driving the policy rate to 8.75% by year-end.
    • As a reminder, the decision is due around 1900BST(1400ET), when the Board of Directors are scheduled to hold a press conference. The majority of analysts expect a 50bp cut later, with some seeing scope for a larger 75bp move.
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  • JP Morgan expect BanRep to ease by 50bp later today, driving the policy rate to 10.25%. Their call is predicated on the idea that the majority of the Board will continue to operate cautiously, wary of the temporary effect of the transportation distortions in early September and their impact on near-term inflation.
  • The majority may prefer to wait for the September CPI report before accelerating the easing pace. JPM maintain as their base case the Board cutting the policy rate by 75bp in both October and December, driving the policy rate to 8.75% by year-end.
    • As a reminder, the decision is due around 1900BST(1400ET), when the Board of Directors are scheduled to hold a press conference. The majority of analysts expect a 50bp cut later, with some seeing scope for a larger 75bp move.