Colombian Key Depository Fiscal Establishment Leaves Benchmark Involvement Charge Per Unit Of Measurement Unchanged; Colombian Peso Remains Stable Against U.S. Dollar

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Banco de la República, the fundamental depository fiscal establishment of Colombia, announced on Fri it volition endure leaving benchmark involvement rates at 7.5 percent. The determination to larn out involvement rates unchanged was approved past times iv members from the Board of Directors, spell the remaining 3 members voted for a 25-basis-point cut.

Changes inwards consumer too gist inflation, which decreased to 5.75% too 5.60%, was ane of a few factors that played into the fundamental bank’s determination to larn out rates unchanged. In the press release, the fundamental depository fiscal establishment likewise mentioned that the economical metrics of Colombia’s trading partners accept improved to a greater extent than than expected:

“The novel figures of global economical action for the destination of 2016 yell for that the average growth of Colombia’s trading partners would accept been higher than estimated a quarter ago. With this, it is probable that the recovery of external need inwards 2017 endure slightly higher than forecast 3 months ago.”

With the increment inwards involvement rates inwards the United States, the Colombian peso is ane of the few Latin American currencies that has gained terra firma against the dollar inwards the final months of 2016, “International long-term involvement rates increased, too the country's price of merchandise proceed to recover. In this context, the peso has appreciated versus the US dollar.,” said Banco de la República.

The COP/USD couple was trading every bit high every bit 0.000337, on Dec 14, 2016:

Chart source: XE.com

The fundamental depository fiscal establishment said Colombia’s economic scheme was performing amend inwards the 4th quarter when compared to the 3rd quarter, however, the depository fiscal establishment went on to explicate that “low dynamism” was soundless acquaint inwards Q4 of 2016.

While Banco de la República highlighted around positive developments inwards the Colombian economic scheme towards the destination of 2016, the fundamental depository fiscal establishment remains concerned close the province of global merchandise too fiscal stability, peculiarly close “global involvement rates too the evolution of the US dollar.”

Furthermore, the Colombian fundamental depository fiscal establishment said the electrical current trace concern human relationship deficit projection for 2016 was higher than previous forecasts. The updated figure for 2016 has increased to 12.6 billion (4.5% of GDP).