HALISTER1: Colombia Breakevens Pricing Inflation Too High: BofA

Colombia Breakevens Pricing Inflation Too High: BofA

(Bloomberg) -- Recommends selling 5y and 7y breakevens at 4.3%; breakeven inflation rates are still above the upper end of the central bank’s inflation target range, according to report by Claudio Irigoyen and Ezequiel Aguirre.
  • Inflation will likely average less than 4% over next 5, 7 years given good reputation of the central bank
  • FX appreciation will help in bringing inflation down
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Claudio Irigoyen (Bank of America Corp)
Ezequiel Aguirre (Bank of America Corp)

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