Colombia's central bank is expected to raise its benchmark interest rate by 25 basis points to 12.5% on Friday, although some policymakers may hold at 12.25% while awaiting further economic data. Seventeen of 31 analysts surveyed by Reuters forecast a 25-basis-point increase, one predicted a 75-basis-point move to 13%, and 13 expected no change. A hike would be the board's second consecutive monthly increase and would bring cumulative rate increases in 2026 to 325 basis points. Annual inflation reached 6.29% through September, more than twice the bank's 3% target, putting Colombia on course to miss that target for a sixth consecutive year. Analysts cited persistent inflation, fiscal pressures, uncertainty around El Niño and minimum-wage negotiations as risks. Third-quarter economic data due in mid-November are expected to show a slowdown. The U.S. Federal Reserve and Chile's central bank held rates this week, while board member Laura Moisa said a hike's effect on inflation could differ from its impact on investment decisions. The market largely expects the policy rate to end the year at 12.5%; policymakers will not meet in November but will vote on rates in December.