Colombia's central bank raises interest rate to 4 pct

BOGOTA, June 20 Fri Jun 20, 2014 2:23pm EDT

BOGOTA, June 20 (Reuters) - Colombia's central bank on Friday raised its benchmark lending rate by 25 basis points for the third straight month on Friday, an increase aimed at containing a recent rise in still-low inflation after a surge in first quarter economic growth.

The seven-member policy-making board increased borrowing costs a quarter point to 4.00 percent, as predicted by 20 of 23 analysts in a Reuters survey published this week before strong first quarter growth of 6.4 percent was revealed on Thursday. (Reporting by Bogota newsroom; Editing by Chizu Nomiyama)

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