Colombia Downgraded by S&P Ratings Amid Growing Fiscal Concerns

Colombia's central bank is likely to deliver a second consecutive 100bps rate hike, taking the policy rate to 11.25%. The aggressive tightening underscores continued efforts to combat inflation and will likely pressurize Colombian bond prices and risk assets while supporting short-term yields and the peso.

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 underscores continued efforts to combat inflation and will likely pressurize Colombian bond prices and risk assets while supporting short-term yields and the peso.