BOGOTA: The technical staff of Colombia’s central bank barely raised its inflation forecast for this yr to 5.5% from a earlier 5.4%, it stated in a quarterly report revealed on Friday.
The forecast is beneath the South American nation’s inflation fee of seven.36% for the 12 months by March however stays above the central bank’s long-term goal of three%.
By the tip of 2025 the technical staff – whose calculations inform choices by the bank’s board when it votes on financial coverage choices – expects inflation of round 3%, barely above the earlier estimate of two.8%.
Upward dangers stay for inflation, the report stated, together with the conduct of the alternate fee, changes to prices of public providers and transport, and local weather situations that might additionally affect meals costs.
The technical staff raised its 2024 financial progress forecast to 1.4% from a earlier estimate of 1.1% and forecast progress of three.2% in 2025, bank board chief Leonardo Villar introduced on Tuesday.
“In the first quarter of 2024 the economy will have improved compared to what was observed at the end of 2023, pushed by elevated levels of activity in the agriculture sector that reflect high supply registered in these months,” the report stated.
Growth within the first quarter may have reached 0.3% year-on-year, the report stated.
The central bank’s board lower the benchmark rate of interest by 50 foundation factors to 11.75% on Tuesday, taking whole cuts since December – when it started easing coverage – to 150 foundation factors.
According to a latest Reuters ballot, analysts anticipate the benchmark fee to finish 2024 at 8.25% and see the speed declining to 5.50% by the tip of 2025.
The forecast is beneath the South American nation’s inflation fee of seven.36% for the 12 months by March however stays above the central bank’s long-term goal of three%.
By the tip of 2025 the technical staff – whose calculations inform choices by the bank’s board when it votes on financial coverage choices – expects inflation of round 3%, barely above the earlier estimate of two.8%.
Upward dangers stay for inflation, the report stated, together with the conduct of the alternate fee, changes to prices of public providers and transport, and local weather situations that might additionally affect meals costs.
The technical staff raised its 2024 financial progress forecast to 1.4% from a earlier estimate of 1.1% and forecast progress of three.2% in 2025, bank board chief Leonardo Villar introduced on Tuesday.
“In the first quarter of 2024 the economy will have improved compared to what was observed at the end of 2023, pushed by elevated levels of activity in the agriculture sector that reflect high supply registered in these months,” the report stated.
Growth within the first quarter may have reached 0.3% year-on-year, the report stated.
The central bank’s board lower the benchmark rate of interest by 50 foundation factors to 11.75% on Tuesday, taking whole cuts since December – when it started easing coverage – to 150 foundation factors.
According to a latest Reuters ballot, analysts anticipate the benchmark fee to finish 2024 at 8.25% and see the speed declining to 5.50% by the tip of 2025.
