Colombian President Gustavo Petro has named two academics, Laura Moisa and Cesar Giraldo, as co-directors of the nation’s central bank, potentially altering the dynamics of the board amid ongoing debates over interest rate cuts.
Announced via a post on X, Petro’s appointments may tilt the balance on a board divided over the pace of monetary easing. Moisa, an economics professor and deputy rector at Colombia’s National University in Medellin, specializes in development, rural economics, and labor markets. Giraldo, a Paris-educated economist, has expertise in fiscal policy and social protection and serves on Colombia’s fiscal rule oversight committee.
While Petro did not specify which board members Moisa and Giraldo will replace, their alignment with the government’s economic vision could favor faster interest rate cuts. The bank’s press office has not commented on the appointments.
Recent central bank decisions reflect a split between a majority favoring cautious rate reductions to control inflation and a minority advocating for faster cuts to boost economic growth. At the December meeting, five of seven board members, including central bank policymakers, supported a slower pace of easing, while Finance Minister Diego Guevara and one other member pushed for more aggressive cuts.
“The two members seem in line with policies aimed at reducing interest rates at a faster pace,” noted Sergio Olarte, chief economist at Banco Latinoamericano de Comercio. This shift could introduce a more dovish tone to the bank’s monetary policy.
Since late 2023, Colombia’s central bank has lowered its key interest rate by 3.75 percentage points, bringing it to 9.5%. However, inflation remains high, closing 2024 at 5.2%, above the 2-4% target range for the fourth consecutive year.
The new appointees will officially assume their roles by the end of February and are expected to participate in their first monetary policy meeting in March, where their influence on future rate decisions will be closely watched.
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