FXStreet (Edinburgh) – According to Eduardo Suarez, Chief FX Strategist at Scotiabank, the Colombian central bank (BanRep) is expected to keep rates unchanged at today’s meeting.
Key Quotes
“All 32 economists surveyed by Bloomberg expect BanRep to hold the o/n unchanged in today’s MPC meeting, consistent with the message that the central bank has recently sent. The main question is in which direction rates will go once the pause ends”.
“The economy has been markedly decelerating, but yesterday’s jumps in retail & industrial confidence suggest there could be light at the end of the tunnel”.
“On the “hawkish side”, we have persistently above the target range inflation (although it seems to be abating recently) as well as rising core (which rose again in the last print), as well as the looming start of the fed’s hiking cycle. In addition, COP has been among the worst performing FX globally, and our take is this weakness will be persistent – suggesting BanRep has to be vigilant”.
“We think the arguments on the tightening side may end up “winning out”, particularly due to the need to keep relative monetary conditions with respect to the US relatively constant in order to protect the country’s financial stability”.
(Market News Provided by FXstreet)