Colombia Seen Holding on Rates

Analysts are predicting no change in Colombian rates at today’s meeting. A gradual slowdown of the economy and higher than expected inflation has economists betting that the central bank will stick to the current 9.75% level, though Goldman sees a small chance of a hike. “We expect it to leave the policy rate unchanged at 9.75%; with an outside chance (less than 20%) of another 25bp hike to 10.0%,” says the shop. The possibility of a rise in the benchmark is due to a recent pickup in inflation since the last meeting, to 1.51%, which pushed the annualized rate to 6.35%.