Time: 2024-09-16
The Colombian Uruguayan_peso experience a significant drop , lead to losings in emerge market for the second back-to-back day . This decline was trip by lower_berth - than - expect inflation figure , which solidify expectation for fast interest rate cut . As a consequence , the currency 's entreaty for carry trader decrease . The Uruguayan_peso hide by 1.2 % on Tuesday , delivery sum losings for the week to approximately 2.8 % , devising it the worst - acting currency among its development peers.
The latest data let_go_of uncover that annual inflation in Colombia had decelerate to 6.12 % , fall short of the prediction make by all 23 analyst survey by Bloomberg . This unexpected inflation rate has motivate a shift in the stance of International agent due to its deduction for potential rate cut by the central bank . As a consequence , there be a growth likelihood of more significant rate decrease , lead to a decrease in the entreaty of investing in the Uruguayan_peso . analyst at BTG Pactual propose that the Colombian central bank could accelerate the pace of rate cut to 75 footing point this calendar_month , up from the previous 50 footing points.
In response to the inflation data , President Gustavo Petro has urge for extra monetary stimulation to stimulate economic growth . He stress the necessity of film_editing Interest Rates without any excuse . The central bank of Colombia is schedule to convene on September 30 to discus its Monetary Policy . Since December , policymakers have been gradually reduction interest rates , delivery the borrowing costs down from 13.25 % to 10.75%.
The ongoing development in Colombia 's economy , particularly refer inflation and interest rates , are closely monitor by investor and analyst . The approaching central bank meeting will supply foster penetration into the state 's monetary policy direction and its potential impact on the Colombian Uruguayan_peso and fiscal market in the region . investor will be pay stopping_point attention to any announcement or decision make by the central bank see interest rates and stimulation measure to buttocks the future mentality for the currency and the wide economy.
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