The Colombian peso grows ahead of inflation changes
Due to latest news from Columbia its currency has increased a bit caused by the decreased possibility of slowing inflation. According to Alvaro Camaro a chief analyst at Stanford Financial Group’s unit in Bogota the growth of the economy is expected to decrease by 50 percent throughout this year. He has added that the market supposes that the inflation will slow after the August.
According to the opinion of 24 out of 27 experts the central bank of the country will not make any changes into its leading rate. However the rest of experts suppose that the Central Bank will increase costs by 0.25 percent throughout the meeting that will take place on August 15th.
Due to the economical numbers became available after the first quarter the GDP of Columbia increased by 4.1 percent. And the general volume of the economy growth will reach the point of 4 percent this year. As for the inflation it will probably turn to growth in the August as the current truckers’ strike has already increased the food prices.
Due to Camaro the food prices will help to decrease the inflation that has increased up to 7.5 percent throughout the last month. By the way the inflation growth predicted by the central bank for this year shouldn’t overcame the 4.5 percent level.
As for the currency of the country it has decreased in relation to the USD during the last 6 weeks. According to the Colombian foreign exchange electronic transaction system the peso decreased to 1,863.75 in relation to the USD.
The increasing difference between Colombian and US benchmark rates and foreign direct investment contributed to the 8.4 percent growth of the peso. However the fall of the commodity prices will probably ease the effect of the foreign direct investments.
Finally, as for the oil, it has increased to $115.05 per barrel throughout the trades at New York Mercantile Exchange.
