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BBVA Market Strategy says Colombian assets have come under pressure as a slowing economy makes a December central bank rate cut likely, possibly larger than 25bp. Fiscal concerns grow after lost royalty revenues and President Petro's suggestion of removing the fiscal rule.
Expected rate cuts and political fiscal risk weaken the Colombian peso, with USDCOP forecast to rise toward 4400-4500. For feed buyers, a weaker COP has little direct grain price effect, though it signals currency-driven cost shifts for Colombian feed importers.
bbvamarketstrategy.comDavid FritzNov 17, 2023Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
