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MNI BanRep Review: December 2023

COLOMBIA
  • BanRep To Be Cautious With Easing Cycle
  • The Colombian central bank decided to cut the repo rate by 25bps to 13.00% at its December meeting. The decision was split, with five board members voting for this action, and two voting to keep the policy rate unchanged.
  • Governor Villar stated that dissenting members sought more information on the 2024 minimum wage increase and highlighted that the central bank should be cautious in cutting rates, and that consecutive cuts should not necessarily be implied.
  • BanRep also announced that it plans to boost international reserves with a program to buy as much as $1.5 billion, preventing a reduction in the IMF’s flexible credit line. The board approved beginning the program to maintain “appropriate external liquidity levels” without aiming at any “exchange rate objective” or altering the volatility of the currency.
  • The full MNI review with analyst views is here:
  • MNI BanRep Review - December 2023.pdf


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