Colombia Likely to Raise Rate

Colombia’s central bank is likely to raise its rate 25bp to 4.25% today, according to market consensus. Goldman Sachs says there is a small probability of a pause, which is being urged by President Santos. “We feel that continuing to normalize policy would reinforce the independence and inflation-fighting credentials of the central bank,” Goldman says. Morgan Stanley expects rates to reach 4.50% by year-end and says the Colombian economy remains in balanced expansion at 4%-4.5% growth with inflation pressures contained.