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Capital Economics reports that Colombian financial markets rallied after the political turmoil around President Petro raised hopes that his reform agenda would stall. The firm expects the peso to give back some of its gains over the rest of 2023 because the current account deficit remains large.
It also notes that falling regional inflation opens the door to rate cuts, but doubts rates will fall as far as many expect.
A weaker peso later in the year would raise the local cost of dollar-priced feed imports for Colombian buyers. Lower regional rates would support local credit conditions, but the effect on global feed commodity prices remains minimal.
capitaleconomics.comKimberley SperrfechterJun 9, 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.
