Banco de la República left interest rates at 13.25%, a terminal rate that needs to come down ASAP. The cut doesn't need to be radical but at least signal that the easing cycle has begun.
According to J.P. Morgan, this was a rejection of Petro presidency. That is clear for all to see. Where they are a little off is suggesting that this will impact the reform process.
Colombia has a vested interest in the potential of having a future democratic neighbor, and last week, we saw Washington lift sanctions on Caracas for six months.
Much of the private sector continues to think that a sovereign nation can continue to operate, pay the bills, and support all the public services required even with everyone paying the minimum taxes possible.
Colombia's Finance Ministry and the National Business Association of Colombia (ANDI) have spent weeks and months asking for rate cuts. Will they get what they want?