There’s a growing debate about whether the Colombian central bank will hike rates. And several plausible triggers – from a pre-election spending spree to a bumper minimum wage hike – could tip the MPC’s balance in this direction. That said, market pricing appears to have shifted up too aggressively. Given how high interest rates are to start with, we suspect that, if BanRep does hike, the tightening cycle will be short-lived and could quickly be reversed after next year’s election.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services