The central bank of Colombia (BanRep) cut the policy rate by 50bp to 11.75% today (30 April), maintaining the same pace of reduction. The decision was split the same way as last month: a majority (5) voting for a 50bp cut, one (likely Acosta) for 75bp and one (likely FinMin Bonilla) for 100bp (for more about the hawk/dove divide in LatAm see here). BanRep remained cautious overall, with the staff modestly revising growth up and noting the more hawkish global and US environment. In the press release, BanRep President, Leonardo Villar, also noted that the majority thought it appropriate to maintain a cautious tone given the market pricing and expectation (full consensus for -50bp). There is no meeting in May, so a potential acceleration of the easing pace will be delayed until June. Ongoing UST pressure, a weaker COP, and a flatter inflation profile in 2Q24 would temper calls for any more aggressive cuts.
For more, including views on FX and local rates as well as accompanying charts, see full note.