(Bloomberg) -- Colombian President Gustavo Petro called on banks to follow Bancolombia SA’s example and cut interest rates, after the private lender said it would significantly lower costs for clients holding 1.3 million cards. 

As of March 10, clients holding half of Bancolombia-issued credit-cards will see their interest rates reduced to 25%, which compares to the 46% maximum rate banks can legally charge users in the country, the Medellin-based lender said in a statement. The move is in response to high inflation in Colombia, it said.

(Tweet translation: “It seems very good to me that Bancolombia substantially lowers its interest rate. Other banks should follow suit. We are not going to let ourselves stagnate financially. It’s time to move forward.”)

With inflation running at a two-decade high, Petro has sought aggressive measures such as a bid to cut household utility bills to ease price pressures, though this attempt has so far been thwarted.

The central bank has raised borrowing costs by 11 percentage points since 2021 to 12.75% and is expected to deliver another increase at the end of this month.

--With assistance from Oscar Medina.

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