Sunday, Mar 26, 2023

Former Colombian finance ministers criticize Petro comments on central bank

Former Colombian finance ministers criticize Petro comments on central bank

A string of former Colombian finance ministers criticized the Andean country's President Gustavo Petro on Thursday after he took to Twitter to question the central bank's decision to hike its benchmark interest rate last week.
Last Thursday the bank's board voted by majority to raise the rate by 100 basis points to 10%, inline with other central banks as world monetary policy authorities struggle with rampant inflation.

However, Petro's comments followed a report by the government's DANE statistics agency on Wednesday, which revealed that inflation in September rose 0.93% - with food prices rising 1.61% - taking 12-month inflation to 11.44%.

"Food prices continue to drive the rhythm of inflation in Colombia; this time less due to international inflation, more because of flooding ... Is it useful to raise the interest rate to contain inflation?: No," the president said in a message on Twitter.

At least five former finance ministers criticized Petro, including Juan Camilo Restrepo, who served under former President Andres Pastrana, and Mauricio Cardenas, who formed part of ex-President Juan Manuel Santos' government.

"The markets take a dim view of a president firing shots at the central bank, it takes away credibility of all the country's economic institutions," Restrepo told local media.

Petro is not the first president to disagree with the central bank's decision, Colombia Risk Analysis founder Sergio Guzman told Reuters via WhatsApp, though adding that the comments represent a level of political risk for the future.

"Petro's bark is worse than his bite. Although it's a bad signal, it's not unprecedented and he can't really enact significant changes that would materially affect the country's monetary policy," Guzman said.

Colombia's peso closed down 0.68% at 4,613.50 versus the dollar, something stockbrokers attributed to Petro's comments on the central bank's rate decision, as well as other comments by the president concerning a possible tax to tackle so-called "swallow capital" that moves swiftly from place to place to take advantage of banking and monetary systems.

Related Articles

Powell: Silicon Valley Bank was an 'outlier'
Bordeaux town hall set on fire in France pro democracy protest
Police violence in Paris
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
The US government has charged Chinese businessman Guo Wengui with leading a $1 billion fraud scheme that cheated thousands of followers out of their money.
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
If this was in Tehran, Moscow or Hong Kong
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Drew Barrymore
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Silicon Valley Bank exec was Lehman Brothers CFO
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
Kamala Harris: "The United States has formally determined that Russia has committed crimes against humanity."
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
U.S. Jet Shoots Down Flying Object Over Canada
Nord Stream terror attack: David Sacks breaks down Sy Hersh's story
Being a Tiktoker might be expensive…
Miracle: El Salvador Search and Rescue teams, with the support of Turkish teams, rescued a woman and a child from the rubble 150 hours after the earthquake
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
President Joe Biden delivered the 2023 State of the Union Address , in order to help Americans that missed the 2022 speech, do not have internet, and suffer from short memory.