Peru ousts another president, Colombia rebalancing?

The ousting of Peru's President Jerí this week will have limited immediate economic implications given that Peru's balance sheet is strong. But political instability - which is unlikely to go away after April's general election - will probably slow progress on reforms needed for Peru to reap the full benefits of elevated metals prices. Elsewhere, while the slowdown in domestic demand in Colombia in Q4 will probably ease some of the central bank’s recent concerns about unbalanced growth, policymakers are firmly focused on the deterioration in the inflation outlook. If the large minimum wage hike remains in place, we think the tightening cycle will continue over the coming months.