The deterioration in the perception of the central bank's independence will hinder local markets from seeing the issuance of non-indexed paper in the foreseeable future, implying the stagnation in the recovery of the local capital markets.

Now that the first preemptive move has taken place, we think that seeing another one is a latent possibility. Despite high economic growth, the impressive rebound on domestic investment implies that the economy is currently more able to absorb increased activity levels without inflation.

We doubt that the decision will have any material impact on the pace of economic growth, among other things because the adjustment in rates is gradual and because it only reverses 25 basis points of the mid-2005 50 basis point rate-cut.

Controlled inflation will allow the bank to hold the rate at its current level. In my view, potential growth in Colombia is higher than what the consensus believes, so I don't think inflationary pressures will lead the bank to raise rates this year.

The market is weak today because of continued adjustment of the 10-year U.S. treasury and the strength of the euro.

Companies are signing these accords because it's a lost battle against the government. We still remember Shell. Sooner or later, there will be problems with the supply, which will be lower because no company will want to produce if it doesn't receive a proper profit.