According to the Banco de la República's monthly survey, the market expects inflation to continue declining after lower-than-expected price developments in February (0.71% m/m). Thus, March inflation is expected to reach 0.38% m/m, led by a slower trend in food prices, while the annual change in the consumer price index is expected to close 2018 within the issuer's target range of 3.35%. If this trend continues, coupled with weak economic growth, the monetary authority would have room for a further reduction in the benchmark rate in the second half of the year, to 4.25%.
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