Colombia Central Banker Quits as Husband Seeks Presidential Run

(Bloomberg) -- Colombia central bank co-director Carolina Soto presented her resignation to the board after her husband confirmed he will run for the May 2022 presidential elections.

Soto, who confirmed in a phone interview she handed her letter of resignation Friday, had held the post since July 2018 after being appointed by then President Juan Manuel Santos. Once President Ivan Duque names Soto’s replacement, he would have appointed all five central bank co-directors. The seven-member board also includes the bank’s governor and the finance minister. 

Colombia’s central bank has signaled it may soon join the regional trend for higher interest rates as inflation accelerates and policy makers expect the pace of economic growth to pick up. Economists surveyed by the bank see the key rate rising by 75 basis points this year, from a record low of 1.75%, starting in September. 

Soto’s husband, former Health Minster Alejandro Gaviria and who up until now was rector of Bogota-based Los Andes University, announced his plans to seek the presidency. Gaviria, is a centrist academic considered an outsider in Colombian politics, and will run against other candidates including leftist senator Gustavo Petro who is leading early polls.  

©2021 Bloomberg L.P.