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MNI BanRep Review - Jan 2024: Staying Cautious With Another 25BP Move

MNI Colombia Central Bank Review - Jan 2024

MNI Colombia Central Bank Review - Jan 2024

Executive Summary

  • The Colombian central bank decided to cut the repo rate by 25bps to 12.75% at its January meeting.
  • The decision was split, with two members of the committee favouring a more dovish 50bp move.
  • The decision was a moderate hawkish surprise, with the majority of surveyed analysts forecasting a larger 50bp cut.
  • Although all analysts view the decision as hawkish-to-expectations, there is near-unanimity that the pace of rate cuts will soon be accelerated, largely echoing comments made by Governor Villar in the post-decision press conference.
  • It is worth noting that the quarterly inflation report (with updated forecasts from BanRep technical staff) will be released on Friday. The minutes are then scheduled to be published on February 05.

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MNI BanRep Review - January 2024.pdf

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