Pressure on the Issuer

TL;DR

The Banco de la República increased its monetary policy rate by 100 basis points.
The decision was based on rising core inflation, worsened expectations, and international and internal pressures.
The government's reaction to the rate hike has raised concerns about the central bank's autonomy.
Core inflation remains above the target range and is trending upwards.
External factors like the conflict in Iran and oil price volatility add to economic uncertainty.
Financial markets had already anticipated tighter monetary policy, with TES rates increasing.
Short-term economic policies, such as an excessive minimum wage hike and fiscal pressure, contributed to inflationary pressures.
The autonomy of the central bank is crucial for addressing problems exacerbated by short-term policies.
Defending the central bank means defending an institution that prevents the costs of improvisation from affecting the country.

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