Colombia’s Next Rate Meeting at Risk After Minister Walkout

Colombia's central bank is likely to deliver a second consecutive 100bps rate hike, taking the policy rate to 11.25%. The aggressive tightening will further tighten local financial conditions, likely supporting the peso and pushing up domestic yields while increasing downside risk to growth and local equities.

Analysis

Colombia's central bank is likely to deliver a second consecutive 100bps rate hike, taking the policy rate to 11.25%. The aggressive tightening will further tighten local financial conditions, likely supporting the peso and pushing up domestic yields while increasing downside risk to growth and local equities.