Colombia: Selected Issues
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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.
Series:
Country Report No. 2016/134
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
English
Publication Date:
May 25, 2016
ISBN/ISSN:
9781484367520/1934-7685
Stock No:
1COLEA2016003
Pages:
52
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