Colombia Central Bank Raises Benchmark Rate

Colombia’s Central Bank raised the benchmark overnight lending rate Friday, surprising the majority of analysts. It chose not to hold the rate, as expected, but raised it a quarter of a percentage point to 7%. The decision to raise the rate was prompted by higher-than-expected second-quarter growth of 6%. Last month the Bank also raised the interest rate 25 basis points on quickening growth. Higher interest rates should help keep inflationary pressures at bay. Inflation for the 12 months through August was 4.7%, up from 4.32% in July.