Colombia | Central Bank dilemmas

Summary

Members of the Board of Directors of Banco de la República give an idea of what is to come in terms of monetary policy for the remainder of 2021 and 2022. The Central Bank will decide whether to start its upward cycle at the next meeting at the end of September.

Key points

• Key points:
• The increase in inflation in August to 4.4% year-on-year is mostly driven by transitory factors.
• The producer price index has been under pressure for several months and has not let up, putting further pressure on the figures.
• It is expected to close 2021 and 2022 with current account deficits lower than those observed so far.
• The recovery in the labor market remains sluggish.
• The country is expected to achieve 7.5% growth this year and 4% next year.

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