Segura: “Obviously Minister Kurt Burneo will respect the independence of the central bank”

According to an investment bank report, recent comments by new economics minister Kurt Burneo on fiscal and monetary policy would cause market anxiety. J.P. Morgan.

An analysis of the financial company, reproduced by the newspaper Gestión, indicates that the idea of ​​”harmonizing” both policies can be seen as a risk to the autonomy of the Central Reserve Bank (BCR), which is responsible for monetary policy.

However, the former head of the MEF, Alonso Segura, felt that the statements burning they would not go that route and that it is “quite clear” that the minister would respect the independence of the central bank.

“I don’t think Burneo is looking to change the dynamics of relations between the Ministry of Economy and the Central Bank. Both institutions can always better coordinate their actions, while respecting their autonomy. The noise was created in vain,” Segura told Bloomberg.

In his interview with BloombergSegura noted that it is always useful for the economy minister to know what the Central Bank is thinking.

“The idea is how both countries are going to harmonize their policies in the future, and that’s fine,” he said.

Segura added that the BCR is likely already in the final stages of raising interest rates and that more hikes could be made soon.

On the other hand, the former head of the MEF pointed out that if Burneo wants to gain credibility, he must show that Government changes its course.

He also indicated that the new minister should show his strength in the cabinet by correcting the economic distortions created by the government and Congress.