Colombian central bank expected to keep rates on hold – BBH

FXStreet (Edinburgh) – Analysts at BBH sees the Colombian central bank maintaining its rates at 4.5% at its meeting this week.

Key Quotes

“The Colombian central bank announces its decision on Friday”.

“Although last meeting’s decision to hold rates at 4.50% was not unanimous, the bank is widely expected to keep rates at the same level”.

“Pass-through inflation is now a big concern for policy members after the Colombian peso lost nearly 40% of its value over the last 12 months”.

“Still, it doesn’t seem as if we are at the breaking point yet for a majority of board members”.

“Separately, the trade balance for June will be released. Markets are forecasting a relatively unchanged figure of -$900 mln. Note that the trade deficit bottomed in January at $1.8 bln”.

Analysts at BBH sees the Colombian central bank maintaining its rates at 4.5% at its meeting this week…

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