Petro’s ‘Worst Mistake’ Saves Colombia Central Bank From Turkey’s Fate

Colombian President Gustavo Petro says that naming Olga Lucía Acosta to the central bank was his biggest blunder, after she resisted his calls to slash interest rates. For the same reason, others credit her with saving the bank’s independence and the nation’s inflation-targeting model.

By siding with inflation hawks at the bank, Acosta has effectively deprived Petro of control of the board, thwarting the leftist leader’s desire for dramatic monetary easing. In fact, the monetary authority is expected to deliver another jumbo interest rate hike of a full percentage point on Tuesday.