The central bank of Colombia (BanRep) cut the policy rate by 50bp to 10.75% on 31 July, as widely expected, maintaining the same pace of reduction as recent meetings. The decision was split between 50bp and 75bp: the majority (five) voting for a 50bp cut, two (likely Acosta and FinMin Bonilla) for a 75bp. Villar also noted the COP rally back to 4,000 mitigates recent passthrough risks.
For more, including views on FX and local rates as well as accompanying charts, see full note.