Societe Generale’s Dev Ashish notes that Colombia’s Council of State has suspended the government’s 23% minimum‑wage increase, forcing President Petro’s administration to issue a new, economically justified decree within eight days. The decision temporarily halts the record hike, eases inflation concerns, pushes short‑term yields lower, and strengthens the Colombian Peso (COP), while increasing policy and political uncertainty.

Court suspension lifts Peso and bonds

"The Council of State—Colombia’s highest administrative court—has suspended the government’s 23% minimum‑wage increase announced in December."

"The ruling requires the Petro administration to issue a new decree within eight days, supported by a detailed economic justification aligned with BanRep’s inflation target, productivity trends, and legal criteria."

"This decision temporarily halts implementation of the record hike and introduces significant policy and political uncertainty."

"The suspension immediately eased market concerns around inflation expectations, pushing short‑term yields lower and strengthening the peso."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)