Bolivia Wins Double Rating Jump From S&P After Economic Reforms

Central bank President Marcelo Zabalaga expects Bolivian inflation to accelerate to 4.8% this year, up from 4.5% in 2012 (a 0.3 percentage-point/30bps increase). The modest rise signals slightly higher inflationary pressure that could support a more hawkish stance from the central bank, though the development is limited in scope and likely to have mainly domestic/EM market relevance.

Analysis

Central bank President Marcelo Zabalaga expects Bolivian inflation to accelerate to 4.8% this year, up from 4.5% in 2012 (a 0.3 percentage-point/30bps increase). The modest rise signals slightly higher inflationary pressure that could support a more hawkish stance from the central bank, though the development is limited in scope and likely to have mainly domestic/EM market relevance.