Colombia: Selected Issues

May 25, 2016

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Format: Chicago

Colombia: Selected Issues, (USA: International Monetary Fund, 2016) accessed November 21, 2024

Summary

This paper presents an assessment of the monetary policy stance and broad financial conditions in Colombia, which provides insights about macro-financial linkages. It also discusses how nonfinancial corporate debt and leverage have increased in recent years, supported by easy access to capital markets, abundant global liquidity, and low interest rates. While some sectors look somewhat more strained than others (oil, gas, and airlines), debt servicing capacity has also improved with recent economic growth. This paper explores three possible drivers of inflation dynamics in Colombia: exchange rate pass-through, the El Niño meteorological phenomenon, and wages. The Colombian peso depreciated in line with the decline in oil prices, pushing up tradable-goods inflation.

Subject: Banking, Central bank policy rate, Corporate sector, Credit, Economic sectors, Exchange rate pass-through, Financial sector policy and analysis, Foreign exchange, Inflation, Money, Prices, Stress testing

Keywords: Corporate sector, CR, Credit, Exchange rate pass-through, Financial condition, Global, Inflation, Inflation expectation, Interest rate, ISCR, Monetary policy, Monetary policy rate, Monetary policy stance, Monetary policy tightening, South America, Stress testing, Y inflation

Publication Details

Pages:

52
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/134
Stock No:

1COLEA2016003
ISBN:

9781484367520
ISSN:

1934-7685

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