Recent protests have pushed Colombia’s government away from the fiscal reforms that are needed to reduce the public debt ratio in the coming years. It’s therefore likely that the sovereign will lose its investment grade rating, which will keep local financial markets under pressure. Given these fiscal risks, we now expect the central bank to begin a tightening cycle later this year rather than in early 2022.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.