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MNI BanRep Preview - June 2023

COLOMBIA
  • For those who missed the central bank preview published last night -- All 24 surveyed analysts expect BanRep to keep the overnight lending rate unchanged at 13.25%, confirming the end of the tightening cycle.
  • Furthermore, the continued outperformance of the Colombian peso is likely to bolster an already improving inflation outlook, which in turn should make BanRep more comfortable keeping policy steady at this juncture and heightens the probability of a unanimous decision.
  • The focus going forward now turns to when the central bank may envisage commencing rate cuts, a topic that has garnered increased attention following the latest comments from the newly-appointed finance minister.
  • The full MNI preview with analyst views is here: https://roar-assets-auto.rbl.ms/files/54393/MNI%20Colombia%20Central%20Bank%20Preview%20-%20June%202023.pdf

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