Interest rates in Colombia were left unchanged at 4.50% on Friday but, while the accompanying statement remained relatively balanced, the downward revision to this year’s GDP growth forecast suggests that policymakers are becoming more dovish. Accordingly, we remain comfortable with our forecast for interest rates to be cut by 50bp to 4.00% later this year. By contrast, the consensus still expects rates to rise to 4.75% by end-16.
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