Colombia cenbank ups rate to 4.75 pct, beginning tightening cycle
BOGOTA, Sept 25 (Reuters) - Colombia's central bank increased the benchmark interest rate a quarter point on Friday in an effort to stem rising inflation even with falling economic growth projections.
The seven-member board decided to boost the lending rate to 4.75 percent, resuming a tightening cycle after 12 months of holding it steady, meeting the forecast of 13 of 23 analysts in a Reuters survey.
The central bank said that the effect of the devaluation of the peso currency and the El Nino weather phenomenon would slow inflation's decrease back down toward the 2 to 4 percent target range.
(Reporting by Julia Symmes Cobb)
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