By CentralBankNews.info
    Colombia’s central bank raised its policy rate for the eight month in a row, saying this was “to ensure that inflation converges to the target in 2017 and contributes to the reduction in the current account deficit.”
    The Central Bank of Colombia raised its policy rate by a further 25 basis points to 7.00 percent and has now raised it by 250 basis points since September last year when it embarked on a tightening cycle. In 2016 it has raised the rate by 125 points.
    Inflation in Colombia rose to 7.98 percent in March from 7.59 percent in February to the highest rate since October 2001, with the central bank attributing the pressure on inflation to the sharp increase in food prices and the partial transfer of the devaluation of the peso to domestic prices.
    At the same time, the central bank said the risk of an excessive slowdown in domestic demand remains moderate.
    The central bank added that it was committed to keeping inflation and expectations anchored to its target of 3.0 percent – plus/minus 1 percentage point –  recognizing that the increase in inflation is of a transitory nature.

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