One last vote under a hawkish Central Bank Board

COLOMBIA - In Brief 16 Jan 2025 by Andrés Escobar Arango

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A more dovish Central Bank Board is on the way, as president Petro announced that Laura Moisá and César Giraldo will become members of the Board. Ms. Moisá, an economist from Universidad Nacional de Colombia and a PhD in Economic Development from Unicamp in Brazil, is currently the Deputy President of the Antioquia Branch of Universidad Nacional. Mr. Giraldo, an economist from Universidad de los Andes with a PhD in Economics from Paris XIII, is currently a member of the Autonomous Committee of the Fiscal Rule (CARF). Both are well-trained economists, with known trajectories in academia. Mr. Giraldo, incidentally, was at some point vice-president of the bankers’ association. However, they do not represent the status quo. In an event held last December, Ms. Moisá criticized the models used by the staffs of the Central Bank and the Finance Ministry as being too linear and too simple. Mr. Giraldo has written on the inconvenience of limiting direct Central Bank financing to the Government. Given the pool of possible candidates from which Petro could draw the new appointees, one could say these two names are positive developments. However, it remains to be seen whether they will start thinking as the chair they will sit on demands (as the saying goes in Colombia). No announcements have been made as to who is leaving. Steiner and Jaramillo continue to be the obvious names, but Taboada and Villamizar are also a possibility. Either way, the current CB Board will decide the monetary policy rate for the last time on January 31st. Given that the Board does not discuss the policy rate in February, the new Board will have its first go at it in March. One thing is certain. The new Bo...