Colombia central bank raises 2025 inflation prediction

BOGOTA, May 5 (Reuters) - Colombia's central bank raised its inflation prediction for this year to 4.4% from 4.1% in its monetary policy report on Monday, further above its inflation target of 3%.

The report from the bank's technical team maintained the previous forecast for 2026 year-end inflation at 3.0%.

"These projections continue to face a high level of uncertainty," said the technical team in the Monday report, citing different factors including exchange rate fluctuations, U.S. trade policy and supply shocks affecting international food prices.

The revision for the 2025 inflation forecast comes after the bank's seven-member board last week unanimously cut the benchmark interest rate by 25 basis points to 9.25%, amid slightly reduced market inflation predictions, fiscal difficulties and a cloudy international economic outlook.

President Gustavo Petro has repeatedly and vehemently urged the bank board to cut the rate.

The technical team had already reduced its 2025 economic growth prediction to 2.6% from a previous 2.8%, on the back of expectations of a global economic slowdown. The bank predicts growth of 3% in 2026.