Colombia: Can Low Debt And Rates Spur Growth?
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| Title: | Colombia: Can Low Debt And Rates Spur Growth? |
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| Authors: | CME Group |
| Source: | Benzinga. 06/24/2020. |
| Abstract: | Colombia’s economy has been hit hard by both domestic and international coronavirus lockdowns. Retail sales fell by 40% year-on-year in April, and consumer confidence remained low in May, suggesting another month of bleak retail sales (Figure 1). Meanwhile, unemployment surged to a seasonally adjusted record high of 23.6% in April (Figure 2). Colombia’s central bank has been slashing interest rates and has indicated that it may soon reduce rates to negative levels in real terms. With core inflation at 2% year-over-year recently, that implies the potential for another 100 basis points or more of rate cuts from the current 3.25%. Banco de la Republica Colombia’s decision will come on June 30. In the meantime, the Fedesarrollo (Foundation for Higher Learning and Development) consumer confidence data for June will be released on June 24 offering an insight into consumer sentiment. [ABSTRACT FROM PUBLISHER] |
| Database: | Newspaper Source Plus |
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| Abstract: | Colombia’s economy has been hit hard by both domestic and international coronavirus lockdowns. Retail sales fell by 40% year-on-year in April, and consumer confidence remained low in May, suggesting another month of bleak retail sales (Figure 1). Meanwhile, unemployment surged to a seasonally adjusted record high of 23.6% in April (Figure 2). Colombia’s central bank has been slashing interest rates and has indicated that it may soon reduce rates to negative levels in real terms. With core inflation at 2% year-over-year recently, that implies the potential for another 100 basis points or more of rate cuts from the current 3.25%. Banco de la Republica Colombia’s decision will come on June 30. In the meantime, the Fedesarrollo (Foundation for Higher Learning and Development) consumer confidence data for June will be released on June 24 offering an insight into consumer sentiment. [ABSTRACT FROM PUBLISHER] |
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