December 23, 2024 11:52 GMT
MNI BanRep Review – Dec 2024: Hawkish Board Slows Easing Pace
The Colombian central bank decided to cut the overnight lending rate by 25bp to 9.50% at its December meeting.
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Executive Summary
- The Colombian central bank decided to cut the overnight lending rate by 25bp to 9.50% at its December meeting, against expectations for a further 50bp reduction.
- The decision was split 5-2, with one member voting for a 50bp cut and another for an even larger 75bp move. Concerns over the inflation outlook on the back of recent exchange rate pressures and on-going fiscal risks prompted the central bank to slow the easing pace.
- Analysts see risks skewed towards a continuation of the 25bp easing pace ahead, with the hawkish surprise likely to prompt a repricing towards a higher terminal rate.
Click to view the full review: MNI BanRep Review - December 2024.pdf
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