BBVA Research Notes Colombia's Central Bank Stays on Hold Due to Inflation, Fiscal Risks

Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: "

BBVA Research Notes Colombia's Central Bank Stays on Hold Due to Inflation, Fiscal Risks

, MT Newswires - 6:57 AM ET 4/1/2025 default

06:57 AM EDT, 04/01/2025 (MT Newswires) -- The Board of Colombia's central bank (BanRep) kept the policy rate unchanged at 9.5% late Monday in a split decision with four in favor of maintaining stability and three in favor of a 50bps cut, noted BBVA Research.

The decision was based on inflationary and fiscal risks, as well as external uncertainty, said BBVA Research.

BanRep emphasized fiscal vulnerability as a key factor in its decision, given its potential impact on country risk and the exchange rate.

Economic growth showed signs of improvement, with the gross domestic product forecast for 2025 revised upward from 2.6% to 2.8%, driven by a better performance in Q1, pointed out BBVA Research.

Future decisions will depend on the evolution of inflation, tax revenue, and the external environment, with a possible rate cut in the coming months if significant improvements are observed, it added.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.