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Banco de la República board announcing 100 basis point interest rate hike to 10.25% due to inflation from minimum wage increase, with concerned Finance Minister.
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Banco de la República hikes interest rate to 10.25% amid inflation surge and minimum wage controversy

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Colombia's Banco de la República raised its intervention rate by 100 basis points to 10.25%—the highest in over a year—in its first 2026 board meeting, citing persistent inflation above 5% for nearly six months and unanchored expectations from a 23.8% minimum wage hike decreed by President Petro's government. The decision, with a split 4-2-1 vote, drew market surprise and government criticism over economic contraction risks.

A proposal to transfer Suez Canal assets or revenues to Egypt's Central Bank of Egypt (CBE) has sparked debate over the institution's independence and national economic security. Experts view the move as a temporary fix for government debt but one laden with structural risks. The analysis weighs supporting and opposing arguments for a balanced assessment.

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President Donald Trump has nominated former Federal Reserve governor Kevin Warsh as the next Fed chair, a move that has unsettled cryptocurrency markets. Warsh's history of favoring tighter monetary policy has led to fears of reduced liquidity for risk assets like bitcoin. Despite his skepticism toward bitcoin as money, Warsh has shown support for blockchain innovation and invested in crypto ventures.

The US Department of Justice opened a criminal investigation against Jerome Powell, chair of the Federal Reserve, raising fears over the central bank's independence and shaking global markets. The dollar fell to lows as gold hit a new all-time high. In Chile, the Ipsa reached a record driven by copper.

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The Central Agency for Public Mobilisation and Statistics announced that Egypt's annual urban inflation rate stabilized at 12.3% in December 2025, unchanged from November. Month-on-month inflation eased to 0.2%, signaling ongoing slowdown in price pressures. Declines in food prices primarily drove this stability.

Badan Pusat Statistik mencatat inflasi Indeks Harga Konsumen November 2025 sebesar 0,17 persen bulan-ke-bulan dan 2,72 persen tahun-ke-tahun. Bank Indonesia menyatakan bahwa angka ini merupakan hasil dari konsistensi kebijakan moneter dan sinergi dengan pemerintah. Inflasi diproyeksikan tetap dalam kisaran sasaran 2,5±1 persen pada 2025 dan 2026.

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Gubernur Bank Indonesia Perry Warjiyo mengungkap tiga kunci utama—optimisme, upaya maksimal seluruh pihak, dan sinergi—untuk mendorong pertumbuhan ekonomi lebih tinggi pada 2026. Saat membuka acara Bank Indonesia Bersama Masyarakat (BIRAMA) 2025 di Jakarta pada 2 Desember 2025, ia menekankan ketahanan fundamental ekonomi Indonesia di tengah tantangan global. Warjiyo menegaskan komitmen BI untuk merumuskan kebijakan yang seimbang antara pertumbuhan dan stabilitas.

 

 

 

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