Colombia Raises Rate to 5.25% to Slow Credit-Fueled Growth

Colombia’s central bank raised borrowing costs for a second straight month in a bid to stabilize the fastest economic growth since 2006 and slow inflation toward the mid-point of policy makers’ target amid a surge in lending.

The seven-member board, led by bank chief Jose Dario Uribe, raised the overnight interest rate by a quarter point to 5.25 percent today, as forecast by 22 of 36 economists surveyed by Bloomberg. Fourteen analysts expected no change. The decision wasn’t unanimous.