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Villar Comments On Rate Floor, Decision On Further Lockdown

COLOMBIA
  • Markets focused on comments from Central Bank Chief Villar surrounding further space to cut rates if necessary. Despite the dovish undertone of the headline, we highlight a further comment:
  • "In current conditions where international medium and long-term interest rates have shown an important upward adjustment, the risk that portfolio investors have a reduced risk appetite for emerging markets is not insignificant, which obviously reduces the available space for more expansive monetary policies on the part of our central banks," Villar added.
  • *Today, Colombia officials will meet to decide whether to adopt a new lockdown in Bogota next weekend.

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