off-the-wire

Colombia's central bank raises benchmark rate to 13.25% in split vote

Kitco Media
By Reuters
Published:
Updated:
Reuters

BOGOTA, April 28 (Reuters) - Colombia's central bank board raised the benchmark interest rate by 25 basis points to 13.25% on Friday, surprising the market, where a majority of analysts had forecast a halt to rate hikes.

Four policymakers voted for the 25 basis point increase, while two wanted to keep the rate unchanged and one voted for a 50 basis point increase.

Fifteen of 26 analysts in a Reuters survey last week predicted the seven-member board will hold the rate at 13%, while the remaining 11 projected a 25 basis point increase 13.25%.

Incoming Finance Minister Ricardo Bonilla, who will take office on May 1, told local radio on Thursday he expected a hold because of a reduction in food price inflation.

The bank's technical team updated its growth forecast for 2023 for Latin America's fourth-largest economy to 1%, up from 0.84%.

Reporting by Nelson Bocanegra Writing by Julia Symmes Cobb and Alistair Bell
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