The Central Bank of Colombia (BANREP) raised interest rates by 25bps to 4.5% late on Friday night. Strong activity data and rising inflation may prompt some further hikes in the very near term. But, with inflation set to ease next year, we expect concerns about the strength of the peso to come to the fore again. Accordingly, it seems that we are now approaching the end of the current tightening cycle and we are sticking to our forecast for rates to peak at 5.0% this year and to remain on hold throughout 2012.