The Trump administration’s determination this week that Colombia had failed to meet its counter-narcotics obligations won’t have immediate economic implications, but it does make Colombia more vulnerable to punitive measures if tensions flare up again between Presidents Trump and Petro. Elsewhere, the weakness in the latest activity figures out of Brazil suggest that – despite the hawkish message at this week’s central bank meeting – an interest rate cut before the end of the year is still a possibility.
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