Colombia raised rates 25 basis points to 12.25% on a split 4-2-1 vote with unemployment at 9.4%, while South Korea posted record chip-driven exports of $120.9bn next to its steepest industrial output drop since 2008.
VanEck EM economist Natalia Gurushina says the peso was among the few currencies rallying after BanRep’s first hike since June, while local rates remain hostage to fiscal consolidation. Source
Colombia's central bank, the Banco de la República (BanRep), just did something most emerging-market policymakers have spent the last two years avoiding: it raised rates into a labor market that is visibly weakening. The board lifted its policy rate 25 basis points to 12.25% on a 4-2-1 vote: four directors backed the hike, two wanted to hold at 12.00%, and one pushed for 50 basis points. The split is the story. A board dividing three ways over a modest move no longer agrees on what the data is telling it.
