The Colombian government’s fiscal plans unveiled late on Friday will have dashed any lingering hopes that policymakers would try to stabilise the public debt-to-GDP ratio, at least ahead of next year’s election. This points to further downward pressure on the Colombian peso and supports our view that the central bank will keep monetary policy tighter than most expect in the next couple of years.
Note: We’ll be discussing fiscal risks in Colombia and across Latin America and much more in an online briefing on Wednesday 18th at 10am ET/3pm BST. Sign up here.
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