How have central banks in the region, including Colombia, set interest rates?

Like Colombia, countries such as Mexico, Brazil, Peru, and Chile also raised interest rates in response to the spike in inflation. All countries were able to reduce their policy rates once inflation began to ease; however, Mexico, Peru, and Chile continued easing, followed by a period of stabilization, as their inflation rates converged toward their respective targets. Colombia, by contrast, had to not only raise its policy rate further but also maintain it at a higher level for longer, given the persistence of inflation amid notable fiscal expansion encouraging domestic demand and sharp increases in labor costs.