Colombia reserve bank captured in between walking and hold at Friday conference By Reuters

© Reuters. SUBMIT PICTURE: General view of Colombia’s reserve bank in Bogota, Colombia October 9, 2019. REUTERS/Luisa Gonzalez

By Nelson Bocanegra

BOGOTA (Reuters) – The marketplace is divided about whether Colombia’s reserve bank board will raise its benchmark rates of interest in a last walking in its tightening up cycle or hold loaning expenses as it weighs inflation and development dangers at its conference on Friday.

Fifteen of 26 experts in a Reuters study recently anticipated the seven-member board will hold the rate at 13%, while the staying 11 forecasted a 25 basis point boost 13.25%.

A hold would be the very first given that September 2021.

Inbound Financing Minister Ricardo Bonilla, who will take workplace on May 1, informed regional radio on Thursday he anticipates a hold due to the fact that of a decrease in food cost inflation.

Outbound minister Jose Antonio Ocampo will go to Friday’s conference in representation of the federal government.

” I anticipate the bank to stop raising rates and there will now be some area so that in the 2nd half rate of interest start to fall,” Bonilla stated.

Nevertheless, a few of the marketplace thinks one last walking is essential to anchor inflation expectations, provided 12-month customer cost boosts were 13.34% in March, more than 4 times the bank’s target.

” We believe this will be the last increase of the cycle and after that the reserve bank will leave the rates of interest steady up until a minimum of the 4th quarter,” stated Felipe Klein, BNP Paribas (OTC:-RRB- financial expert for Latin America.

The board has actually raised loaning expenses by 1,125 points given that late 2021 as financial development sent out inflation skyrocketing. Colombia’s economy broadened 7.5% in 2015.

The bank’s technical group anticipates financial development will slow to 0.84% this year and inflation will reach 8.7%.


Like this post? Please share to your friends:
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: