Colombia cenbank ups rate to 4.75 pct, beginning tightening cycle

viernes 25 de septiembre de 2015 15:58 GYT

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)