Colombia's BanRep Will Keep Rates Low In 2021 Amid Economic Recovery, Leadership Change

• The Banco de la República (BanRep) will extend its accommodative monetary policy stance in Colombia in the coming quarters to boost the country’s economic recovery and increase domestic liquidity.
• Anchored inflation, a negative output gap, and a dovish US Federal Reserve will support the central bank's policy direction, which will remain unchanged despite Leonardo Villar's appointment to succeed Governor Juan José Echavarría in January 2021.
• The agency forecasts that BanRep will maintain its policy interest rate at 1.75% in 2021, and that inflation will average 2.7% y-o-y in 2021, from an estimated 2.6% in 2020.

(Source: Fitch Solutions)