Colombia central bank hikes policy rate 25bp to 12.25% as inflation reaccelerates

Banco de la República raised its policy rate by 25bp to 12.25%, responding to a rise in total inflation from 6.0% to 6.2% in August, driven by food and regulated prices. Core inflation also ticked up to 6.1%, signaling persistent price pressures. The move signals a hawkish tilt, likely supporting the peso and pressuring local bonds.