Colombia Hikes Interest Rate to 24-Year High to Tame Inflation Spike
- Economists predict steepest-ever hiking cycle is near its end
- 20 of 28 economists in Bloomberg survey forecast move to 13%
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Colombia’s central bank continued its steepest-ever interest rate hike cycle despite signs of a sharp economic slowdown as it battles the country’s fastest inflation in nearly a quarter century.
The seven-member board lifted its benchmark rate by 25 basis points to 13% on Thursday, governor Leonardo Villar told reporters after the bank’s meeting in Bogota. The move was forecast by 20 of 28 analysts surveyed by Bloomberg, while the rest expected an even bolder increase to 13.25%.