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Politics Update – President Petro Announces Cabinet Reshuffle

COLOMBIA
  • On Wednesday, President Gustavo Petro announced a host of changes to his administration. Perhaps the most surprising move for markets was the president’s decision to oust his current finance minister, Jose Antonio Ocampo, and replace him with Ricardo Bonilla.
  • Local bond prices plunged following the decision as Ocampo was widely considered to be a market friendly official. After some initial turbulence, the longer-term investor reaction will likely depend on whether the new minister, Ricardo Bonilla, can serve as a moderating force in the president’s administration.
  • While acknowledging the heightened political uncertainty following the cabinet reshuffle, some analysts have adjusted their call for Friday’s central bank decision, tilting towards a more hawkish lean.
  • Full pdf report here:
  • Colombia Politics Update.pdf


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