FXStreet (Córdoba) - The Colombian peso weakened in the market after the decision of the central bank Governing Council to raise the intervention rate by 25 basis points to 5.50%. Most analysts were expecting a bigger rate increase. USD/COP is about to end the week posting the highest close since September above 3100. The pair peaked at 3108, still below November highs but remains with a bullish bias. At the beginning of the month, the pair bottomed at 2781 and since then rose 10%, boosted by a decline in crude oil prices and a stronger US dollar. To the upside, USD/COP has an important resistance between 3100 and 3120; a break higher could open the doors for more gains. Bank of the Republic hikes but less than expected The central bank reiterated that its inflation target is of 3% and aiming to reach it announced another rate hike. According to the statement inflation expectations has risen and the risk of a slowdown in demand has moderated. “In order to ensure convergence of inflation to the 3% target, decided to increase by 25 basis points the interest rate benchmark, continuing the phase of monetary policy tightening initiated in September”, said the central bank. In October, the CPI index rose to 5.89%, the highest level in six years. For more information, read our latest forex news.