BOGOTA, Dec 3 (Reuters) - Colombia’s central bank will likely continue to raise borrowing costs in December, as policymakers try to combat rising inflation, board member Carlos Gustavo Cano said on Thursday.
The board raised the rate 25 points in November, to 5.50 percent, below the 50-point rise many analysts expected.
The bank has said inflation will not be within its long-term 2-percent to 4-percent target range this year or next and began a tightening cycle in September, raising rates 100 basis points in total so far.
“I think we are on a path, like the majority of the board decided at the last meeting, a path of adjustments in the rate,” Cano told Radio Javeriana. “It’s expected that will continue.”
“Economic deceleration has not been enough to adjust it and to achieve macroeconomic balance, so the rate adjustment is imperative and our constitutional mission is to work for low and stable inflation,” Cano said. “That is what the bank has to do.”
The comments come after Finance Minister Mauricio Cardenas told Reuters in an interview this week that the bank’s decision to keep its target range for inflation unchanged removes the need for abrupt increases in the rate, but that the board would likely raise borrowing costs while inflation is above the target. (Reporting by Nelson Bocanegra; Writing by Julia Symmes Cobb; Editing by Nick Zieminski)