The Board of Directors of the Bank of the Republic of Colombia was divided in its latest meeting, deciding by majority to increase the monetary policy interest rate by 75 basis points, setting it at 12%. This decision was made despite four directors voting in favor of the hike, two advocating for a 50-basis-point reduction, and one member preferring to keep the rate unchanged. The majority argued that the increase is necessary to control inflation, which stood at 5.8% in May—far from the 3% target—and to curb domestic demand pressures and high inflationary expectations, which hover around 6.5% for the end of the year. Minority positions warned of the risks this measure poses to investment, competitiveness, and economic growth.